Authorities in the emirate of Abu Dhabi, in the United Arab Emirates (UAE), announced on Tuesday a ban on cryptocurrency mining on farms and agricultural holdings, an unauthorized practice that will be punishable by a fine of 100,000 UAE dirhams, equivalent to around $27,300.
The Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) said in a statement that the ban is due to the fact that cryptocurrency mining “falls outside the scope of economic activities that it has identified and permitted on agricultural land.”
Furthermore, the measure has been taken “following the authority’s observation of illegal practices on some land used for cryptocurrency mining, which contradicts the main purpose of such land, which is limited to the agricultural and livestock activities specified in the applicable legislation.”
For this reason, ADAFSA imposes fines on owners or tenants of agricultural holdings if they use them to mine cryptocurrencies, as this poses a threat to the sustainability and biosecurity of farms and crop fields.
The fines are intended to act as a deterrent and amount to $27,300, a sum that will be doubled in the event of a repeat offense, while the authorities will suspend services and support programs for the owner, cut off the power supply to the operation, and confiscate the equipment used for mining.
Since the rise of cryptocurrencies, which have had a significant impact on the Emirates and other Persian Gulf countries, several Emirati citizens have dedicated space on their farms and villas to illegally install servers and computers for mining.
Source: Investing.com
