Abu Dhabi Global Market (ADGM) has announced plans to introduce a regulatory framework for crypto mining activities. This strategic move comes as part of the country’s broader push to become a global leader in the crypto industry. As part of the initiative, the ADGM Registration Authority has published a discussion paper seeking feedback from industry participants on how crypto mining operations should be governed within, or from, the financial free zone.
This proposed framework aims to bring greater regulatory clarity while supporting responsible innovation in the crypto sector. It outlines how mining activities would be defined, licensed, and supervised. It also ensures compliance with existing UAE laws and sets clear expectations around governance, transparency, and oversight.
How ADGM Plans to Supervise Crypto Mining Activities
As per the latest development within the UAE’s crypto regulatory space, the ADGM Registration Authority has released Discussion Paper No. 1 of 2026. The paper urges industry stakeholders to share their views on the proposed rules for crypto mining activities.
According to reports, the proposal is designed to clarify regulations while promoting responsible innovation and strong governance standards for crypto mining. The paper identifies crypto mining as a process of validating transactions on a decentralized network in exchange for digital asset rewards.
The free zone stated that it is taking a technology-neutral approach, meaning the framework will apply to all types of blockchains, including proof-of-work, proof-of-stake and other consensus models. The regulator believes that the crypto mining regulatory framework is necessary due to the inherent risks of crypto. These risks are often related to operational resilience, cybersecurity, ownership transparency, health and safety at mining sites, and cross-border oversight. Dmitry Fedotov, Head of Emerging Technology at ADGM, stated,
“This is an important step towards regulatory certainty for entities engaged in crypto mining, whether operating locally, establishing regional headquarters, or managing global mining portfolios from ADGM…There’s value in establishing clear expectations for how headquarters entities should exercise oversight, conduct due diligence on host jurisdictions, and apply consistent governance standards across their global footprint.”
Fedetov added that ADGM is specifically looking for feedback on whether the licensing requirements are clear. The team wants to know if the proposed license conditions are fair and proportionate.
ADGM is inviting feedback from companies currently involved in crypto mining and those planning to enter the sector. They also invite comments from technical providers, auditors, and other industry stakeholders. As per the paper, responses are open until March 20, 2026.
How the Proposed Framework Will Work?
Under the proposal, crypto mining companies would be licensed by the ADGM Registration Authority. These companies will be provided a commercial license by the ADGM, rather than being regulated as financial services by the Financial Services Regulatory Authority (FSRA). However, these platforms are required to strictly comply with the federal laws of the UAE.
The framework also sets clear expectations around governance, including disclosure of beneficial ownership, strong operational standards, and risk-based supervision. Oversight would be scaled based on the size and complexity of each mining operation.
The regulator has also introduced a new element called the “global oversight.” This would allow crypto mining firms registered in ADGM to manage and supervise mining operations located outside the UAE.
