ADGM Proposes Crypto Mining Framework to Position UAE as Digital Asset Hub
Abu Dhabi Global Market (ADGM) unveiled plans for a comprehensive crypto mining framework, aiming to establish regulatory clarity while fostering innovation in the UAE. The proposal defines crypto mining broadly—encompassing transaction verification across all consensus mechanisms (Proof-of-Work, Proof-of-Stake, etc.)—with rewards paid in digital assets.
Licenses will be issued as commercial financial services rather than under FSRA oversight, though compliance with existing UAE federal laws remains mandatory. The framework emphasizes governance: disclosure of beneficial ownership, operational integrity, and risk-based supervision scaled to mining operations' complexity.
Notably, ADGM introduces a 'global oversight' provision, allowing registered entities to manage offshore mining activities—a first for Gulf regulators. The financial freezone seeks feedback from miners, tech vendors, and auditors by March 20th.
