The Abu Dhabi Agriculture and Food Safety Authority (UAE) has issued a warning about the illegal practice of cryptocurrency mining on farms, according to a report by Khaleej Times.
The department highlighted the potential for a sharp increase in electricity bills as a result of mining activities. The authority stated that using farms for cryptocurrency mining is considered a violation and goes against the intended purpose of agricultural land.
Those found guilty may face a fine of up to 10,000 dihrams (~$2,723). In particular, mining Bitcoin and other digital assets using the energy-intensive Proof-of-Work algorithm incurs high costs mainly due to electricity consumption. To reduce expenses, miners are often on the lookout for the cheapest sources of electricity.
In 2023, Luxor experts conducted a study on mining in the UAE and noted that agricultural businesses enjoy subsidized electricity tariffs of $0.012 per kWh, which are even lower than those for the general population ($0.02 per kWh) and significantly lower than industrial tariffs, which range from $0.073 to $0.099 per kWh.
