Tuesday, October 27, 2026
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Is crypto mining legal in the UAE?

Crypto mining is legal in the UAE and large licensed farms run in Abu Dhabi, but mining on Abu Dhabi farmland is banned with fines of AED 100,000.

Regulation and who is in charge Illustration: Cryptoweek

Crypto mining in the UAE is legal when it is done as a properly set-up business on suitable land and power. The clearest restriction comes from Abu Dhabi, which bans mining on farms. Crypto itself is legal and regulated, as covered in is crypto legal in the UAE and Dubai.

Is bitcoin mining legal in the UAE?

Yes. Large mining operations run openly in Abu Dhabi. In May 2023, Marathon Digital Holdings announced a joint venture with Zero Two to build 250 MW of mining capacity, a 200 MW site in Masdar City and a 50 MW site in the Mina Zayed port zone. The companies said the project was designed to add base load to the Abu Dhabi grid and used immersion cooling to cope with desert heat.

We found no licence category specific to mining as of October 2026. The UAE's crypto regulators, such as Dubai's VARA and the federal SCA, license firms that provide virtual asset services to others. A mining company is set up like other businesses in its emirate or free zone, so its paperwork depends on where it operates.

Is crypto mining banned on farms in Abu Dhabi?

Yes. The Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) says farmland may be used only for agricultural and livestock activities, and mining is not a permitted use. In May 2024 it warned farm owners that farms cannot be used for mining, with fines then reported at up to AED 10,000.

On September 30, 2025, ADAFSA confirmed the ban with tougher penalties after finding violations on several farms:

  • a fine of AED 100,000, doubled for repeat violations
  • suspension of ADAFSA services and support programmes
  • disconnection of the farm's electricity
  • confiscation of mining equipment
  • referral to the authorities for further legal action

Both farm owners and tenants can be penalised, so letting someone else run rigs on your land is not a defence.

How is crypto mining taxed in the UAE?

The UAE does not impose personal income tax, according to the Chambers Private Wealth 2026 guide, so an individual's personal investment income is generally untaxed. Corporate tax applies to business profits at 0% up to AED 375,000 and 9% above that. Under Cabinet Decision No. 49 of 2023, an individual's business activity is caught only once turnover exceeds AED 1 million in a calendar year, and personal investment that needs no licence is excluded. A licensed mining company is a business and falls under these rules.

More detail is in is crypto taxed in the UAE and Dubai and how crypto mining is taxed.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.

This guide explains how things work. It is not financial, legal or tax advice. Last updated .