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HomeExchangeAbu Dhabi has cracked down on farm-based cryptocurrency mining and imposed heavy...

Abu Dhabi has cracked down on farm-based cryptocurrency mining and imposed heavy fines

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  • Abu Dhabi bans cryptocurrency mining on farms, citing abuse of agricultural land.
  • Violators of Abu Dhabi's new regulation face fines of as much as Dh10,000.
  • Venezuela has disconnected crypto mines from the facility grid and seized greater than 2,000 machines.

The Abu Dhabi Authority for Agriculture and Meals Security (Adafsa) has introduced a strict ban on cryptocurrency mining on farms as a significant step to curb the abuse of agricultural land and management extreme electrical energy consumption. The announcement was made on Thursday, as confirmed by native media outlet Khaleej Occasions.

Cryptocurrency mining, the mechanism for verifying transactions and minting new crypto belongings like Bitcoin, is infamous for its excessive electrical energy consumption as a result of highly effective computer systems it requires. In response to the report, Adafsa's resolution comes amid issues that the energy-intensive strategy of mining cryptocurrencies is resulting in unsustainable spikes in electrical energy prices, which might jeopardize the farm's operations.

The authority made it clear that the farms usually are not outfitted to deal with the excessive power calls for related to cryptocurrency mining. As well as, Adafsa's consultancy emphasised that the farms are supposed for agriculture and their conversion to mining disrupts their supposed use.

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In parallel, violators of this new regulation can face heavy fines, with fines reaching as much as Dh10,000 or US$2,722.57. The measure is a part of a wider initiative to advertise sustainable power use and good land use throughout agricultural areas.

Whereas the UAE permits blockchain-related actions, it enforces strict guidelines to make sure that they’re performed responsibly and inside an applicable setting.

In a associated improvement, Venezuela's Ministry of Electrical energy has equally taken a robust stance in opposition to cryptocurrency mines, disconnecting them from the facility grid. The motion is a part of Venezuela's broader crackdown on cryptocurrency mining, which has already resulted within the seizure of greater than 2,000 mining machines and the indictment of a number of officers.

Each Abu Dhabi and Venezuela's robust insurance policies mirror a rising development of regulators all over the world taking motion to deal with the environmental and infrastructure challenges posed by the rising cryptocurrency mining business.

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