Abu Dhabi Proposes Formal Licensing Regime for Crypto Mining

The Abu Dhabi Global Market (ADGM) Registration Authority has released a proposed regulatory framework designed to bring cryptocurrency mining into a defined and supervised commercial regime.

Announced through Discussion Paper No. 1 of 2026, the initiative aims to provide legal certainty for mining companies operating within, or managed from, the Abu Dhabi financial center.

The proposal reflects a broader effort by Abu Dhabi to clarify how non-financial crypto activities fit into its regulatory perimeter, shifting mining from a largely unregulated activity into a structured business environment with explicit governance and compliance standards.

Mining classified as a commercial activity

Under the proposed framework, crypto mining would be treated as a licensed commercial activity, rather than a financial service. As a result, oversight would fall under the ADGM Registration Authority, not the Financial Services Regulatory Authority (FSRA). This distinction is intended to separate infrastructure-level blockchain operations from regulated financial activities such as exchanges, custody, or asset issuance.

The rules are explicitly technology-neutral, applying across consensus mechanisms including Proof-of-Work, Proof-of-Stake, and future validation models. This approach is designed to future-proof the framework and avoid privileging or restricting specific blockchain architectures.

For companies headquartered in ADGM but operating mining facilities abroad, the proposal introduces a global governance requirement. These entities would be expected to maintain consistent transparency, control, and risk management standards across all jurisdictions in which they operate.

Risk-based supervision and operational focus

Supervisory intensity under the framework would be calibrated based on the scale and complexity of each mining operation. Rather than a one-size-fits-all model, ADGM plans to focus regulatory attention on areas such as cybersecurity, operational resilience, infrastructure security, and heat and energy management.

Importantly, the framework explicitly excludes small-scale, non-commercial mining carried out by individuals for personal purposes. This carve-out is intended to prevent over-regulation while concentrating oversight on industrial and commercially significant operations.

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Disclosure, ownership, and on-chain transparency

Licensing would come with extensive disclosure obligations. Applicants would need to submit detailed information on hardware specifications, physical and digital security measures, and disaster recovery planning. These requirements are designed to ensure that mining operations can withstand operational disruptions and cyber threats.

The framework also introduces strict ultimate beneficial ownership (UBO) disclosure requirements, aligning mining oversight with anti-money laundering and counter-terrorism financing standards. In addition, licensed entities may be required to disclose owned smart contracts and blockchain wallet addresses, enabling on-chain tracing to support transaction monitoring and sanctions compliance.

Consultation timeline and asset recognition

ADGM is currently seeking feedback from industry participants, including mining firms, technology providers, and auditors. The consultation period is open until March 20, 2026, after which the authority is expected to refine and finalize the framework.

Notably, the proposal formally recognizes digital assets generated through licensed mining as property, capable of being owned and taxed. This clarification addresses a long-standing legal ambiguity around the status of mined digital assets.

Broader UAE regulatory alignment

The initiative aligns with a wider 2025–2026 UAE push to regulate virtual asset activities, including recent national-level restrictions on crypto mining in agricultural areas to protect food security and water resources. Together, these measures signal a more coordinated approach to balancing digital asset innovation with environmental, operational, and financial oversight.

If adopted, the ADGM framework would position Abu Dhabi as one of the few global financial centers with a purpose-built licensing regime for crypto mining, offering miners a clear regulatory home while extending oversight over an increasingly industrialized sector.

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