Bybit
ADGM moves to set regulatory framework for crypto mining
Abu Dhabi Global Market (ADGM) has initiated the development of a dedicated regulatory framework for crypto mining activities. The ADGM Registration Authority released Discussion Paper No. 1 of 2026, inviting industry stakeholders to provide feedback on proposed guidance for mining operations conducted within or from the financial free zone.
According to the authority, the initiative is designed to enhance regulatory clarity while supporting responsible innovation and strong governance standards. ADGM aims to balance industry growth with effective risk management, cybersecurity and operational resilience.
How ADGM defines crypto mining
In the discussion paper, ADGM defines crypto mining as the process of validating transactions on decentralized networks in exchange for digital asset rewards. The proposed framework follows a technology-neutral approach, recognizing multiple consensus mechanisms, including proof-of-work and proof-of-stake.
Crypto mining entities would be licensed under a commercial registration regime rather than as regulated financial services under FSRA. However, all registered entities would remain subject to existing UAE federal laws and compliance obligations.
Governance and global oversight model
The proposed framework introduces clear governance expectations, including beneficial ownership disclosure and operational integrity standards. Supervision would follow a risk-based approach, calibrated to the scale and complexity of each mining operation.
A notable feature of the proposal is the concept of global oversight. Crypto mining companies registered in ADGM would be permitted to manage overseas mining operations while maintaining responsibility for governance, due diligence and compliance across jurisdictions.
Why ADGM is acting now
ADGM highlighted that crypto mining presents risks related to cybersecurity, infrastructure resilience, health and safety, and cross-border supervision. Establishing clear regulatory expectations is seen as critical as mining operations increasingly span multiple regions.
The consultation process is open to mining firms, technology providers, auditors and other stakeholders until March 20, 2026. Following the feedback period, ADGM may formalize the framework to support the long-term development of the crypto mining sector in the UAE.
