The Abu Dhabi Department of Agriculture and Food Safety (UAE) has warned about the illegality of mining cryptocurrencies on farms, Khaleej Times reports.
The ministry stressed that mining can cause a sharp increase in electricity bills.
"This activity is considered illegal use of the farm for purposes other than its intended purpose," the publication quotes the resolution.
The Department clarified that a fine of up to 10,000 dichrams (~$2,723) is provided for violation.
Mining bitcoin and other digital assets using the Proof-of-Work algorithm consumes a significant amount of electricity, the payment of which accounts for most of the costs. To reduce them, cryptocurrency miners seek to gain access to as "cheap an outlet" as possible.
In 2023, Luxor experts studied the specifics of mining in the UAE. Jaran Mellerud and Eric Vera drew attention to the fact that subsidized tariffs for agricultural enterprises ($0.012 per kWh) are lower even than those set for the population ($0.02 per kWh) and at times lower rates for industrial enterprises — $0.073-0.099 per kWh.
Recall that the Iranian authorities, in order to combat illegal mining using subsidized electricity, imposed a prison sentence for repeated violations.