The ADGM Registration Authority (“RA”) primarily based within the United Arab Emirates has printed Dialogue Paper No. 1 of 2026, searching for feedback from events on the proposed steering for crypto mining actions carried out inside or from ADGM.
Based on the announcement, the proposal goals to offer readability on rules together with governance requirements and accountable innovation for crypto mining.
Within the dialogue paper, ADGM defines crypto mining as verifying transactions on a decentralized ledger or infrastructure community, in change for rewards within the type of digital property generated by a consensus mechanism. The monetary free zone has taken a technology-neutral strategy to the framework and accepts all sorts of blockchains, together with proof-of-work, proof-of-stake, and others.
The registration authority will supply a business license for crypto mining entities, as a monetary service and never below the regulatory authority of the FSRA. Nevertheless, all crypto entities may even must adjust to the UAE federal legal guidelines which are already in place.
The framework may even embody clear governance expectations, with useful possession disclosure, operational integrity, in addition to risk-based oversight with oversight calibrated to the dimensions and complexity of mining operations.
A brand new idea launched by ADGM shall be world supervision, the place crypto mining entities registered with ADGM may even be capable to supervise and handle crypto mining operations overseas.
ADGM is searching for responses from entities concerned in, or planning to take action, crypto mining actions, in addition to know-how suppliers, auditors, and different related trade stakeholders. Feedback are wanted by March 20, 2026.
ADGM desires to ascertain a framework for crypto mining as a result of it could actually pose dangers in areas equivalent to operational resilience, cybersecurity, transparency of possession and management, well being and security at amenities, and cross-border supervision.
Dmitry Fedotov, Head of Rising Know-how at ADGM, on LinkedIn, wrote: “This is a crucial step in direction of regulatory certainty for entities concerned in crypto mining, whether or not they function domestically, set up regional headquarters or handle world mining portfolios from ADGM.”
He added that areas the place suggestions is particularly sought are readability of licensing necessities, evaluation, proportionality of proposed licensing circumstances, adequacy of on-chain handle disclosure expectations, adequacy of oversight instruments, together with potential SupTech integrations, and expectations for ADGM-based entities overseeing world mining operations.
The latter addresses a real hole, Fedetov says, as mining operations span an increasing number of jurisdictions. He explains: “There’s worth in setting clear expectations about how host entities ought to train oversight, conduct due diligence in host jurisdictions, and apply constant governance requirements throughout their world footprint.”
The United Arab Emirates has a handful of crypto mining corporations in operation
The United Arab Emirates already has a handful of crypto mining entities working in another country.
The 2 greatest recognized are Phoenix, the primary crypto mining entity within the UAE to have an IPO and listing on the Abu Dhabi Trade, and Marathon Digital, which in 2023 entered right into a shareholder settlement with FSI (FS Innovation), the UAE’s BTC mining subsidiary, a sovereign wealth fund ADQ, to type an Abu Dhabi.
Moreover, in 2024, Hut 8, an power infrastructure platform that integrates power, digital infrastructure and computing at scale to energy next-generation energy-intensive use circumstances equivalent to Bitcoin mining and high-performance computing, has registered to open an workplace in Dubai, United Arab Emirates.
