ADGM issues first regional guidance for cryptocurrency mining in Abu Dhabi

The Registration Authority of Abu Dhabi Global Market (ADGM) has published a guidance document on cryptocurrency mining within the emirate’s international financial centre.

First-of-its-kind regional framework

The authority said on Thursday that the guidance is the first such directive issued by any financial centre in the region. It sets out clear procedures for obtaining commercial licences for entities that mine or facilitate crypto mining from within the ADGM.

Under the new framework, crypto mining is classified as a “licensable commercial activity” that falls under the oversight of the Registration Authority, rather than being treated as a regulated financial service. The authority stated it has adopted a “technology-neutral approach” covering both proof-of-work and proof-of-stake mechanisms to ensure mining operations are conducted responsibly.

Aligning innovation with governance

Rashed Al Blooshi, chief executive of the Registration Authority at ADGM, said the move supports ADGM’s broader strategy of fostering innovation while enabling new business models to develop within a well-governed environment.

Mr Al Blooshi noted that Abu Dhabi’s economy is increasingly shaped by digital infrastructure, and the emirate views crypto mining as being at the “intersection of energy, technology and capital”.

“With this guidance, ADGM is open for responsible crypto mining,” he said. “We are giving operators a clear commercial licencing pathway, proportionate supervision calibrated to scale and risk, and certainty on where the regulatory perimeter resides.”

Regulatory certainty for operators

The guidance builds on ADGM’s objective to strengthen digital assets and emerging technologies within its jurisdiction, the authority said. It aims to provide greater regulatory certainty for “responsible crypto mining operators” seeking to expand their activities from Abu Dhabi.

Mr Al Blooshi added that businesses meeting ADGM’s governance and transparency standards will find in Abu Dhabi “a jurisdiction where they can plan, invest and grow with confidence”.

ADGM has been steadily maturing its regulatory framework for digital assets as it seeks to become a global hub for cryptocurrency and digital-asset companies. Recent amendments to the framework have streamlined the acceptance of virtual assets for use within the financial centre and introduced appropriate capital requirements and fees for authorised persons conducting regulated virtual-asset activities.

Two-phase plan for mining regulation

The Registration Authority described the guidance as the first phase of broader plans to develop crypto mining in ADGM. In a second phase, the authority aims to develop specific regulations for mining, with market consultation to begin in due course.

The guidance follows an eight-week consultation held earlier this year, which the authority said generated “substantive feedback”.