The UAE based mostly ADGM Registration Authority (“RA”) has revealed Dialogue Paper No. 1 of 2026, inviting stakeholder suggestions on proposed steering for crypto mining actions performed inside or from ADGM.
As per the announcement, the proposal goals to offer readability on laws alongside accountable innovation and governance requirements for crypto mining.
Within the dialogue paper, ADGM defines crypto mining because the verification of transactions on a decentralized ledger or infrastructure community, in return for rewards within the type of digital property generated by a consensus mechanism. The monetary freezone has take a expertise impartial method to the framework, and settle for all types of blockchains together with proof of labor, proof of stake and others.
License for crypto mining entities can be provided below a business one by the registration authority, as a monetary service and never below the FSRA regulatory authority. Nonetheless all crypto entities will even have to stick to the UAE Federal legal guidelines already in place.
The framework will even embody clear governance expectations, with useful possession disclosure, operational integrity, in addition to danger based mostly supervision with oversight calibrated on the size and complexity of the mining operations.
A brand new idea introduce by ADGM can be world oversight, the place crypto mining entities registered in ADGM can even oversee and handle abroad crypto mining operations.
ADGM is in search of responses from entities engaged in crypto mining actions, or planning to, in addition to expertise distributors, auditors, and different related business stakeholders. Suggestions is required by March twentieth, 2026.
ADGM desires to set a framework for crypto mining as a result of it may well pose dangers in areas reminiscent of operational resilience, cybersecurity, transparency of possession and management, well being and security at services, and cross border oversight.
Dmitry Fedotov, Head of Rising Expertise at ADGM, on LinkedIn, wrote, “This is a crucial step in direction of regulatory certainty for entities engaged in crypto mining, whether or not working domestically, establishing regional headquarters, or managing world mining portfolios from ADGM.”
He added that the areas the place suggestions is particularly sought are within the readability of licensing necessities, evaluation, proportionality of proposed license situations, appropriateness of onchain tackle disclosure expectations, adequacy of supervisory instruments, together with potential SupTech integrations, and expectations for ADGM headquartered entities overseeing world mining operations.
The final one addresses a real hole, says Fedetov, as mining operations more and more span a number of jurisdictions. He explains, “There’s worth in establishing clear expectations for a way headquarters entities ought to train oversight, conduct due diligence on host jurisdictions, and apply constant governance requirements throughout their world footprint.”
The UAE has a handful of working crypto mining companies
Already, the UAE has a handful of crypto mining entities working in a foreign country.
The key two well-known are Phoenix, the primary crypto mining entity in UAE to have an IPO and record on Abu Dhabi Trade, and Marathon Digital which in 2023 entered right into a shareholder’s settlement with FSI (FS Innovation), the BTC mining subsidiary of UAE ADQ a sovereign fund, to type an Abu Dhabi.
Moreover, in 2024, Hut 8 an power infrastructure platform integrating energy, digital infrastructure, and compute at scale to gasoline subsequent era, power intensive use circumstances reminiscent of Bitcoin mining and excessive efficiency computing, registered to open an workplace in Dubai, UAE.
