Abu Dhabi introduces dedicated licensing framework for crypto mining

Abu Dhabi has introduced new guidance setting out commercial licensing and governance requirements for cryptocurrency mining businesses, becoming the first international financial center in the region to establish a dedicated framework for the activity.

The Guidance, published by the Abu Dhabi Global Market (ADGM) Registration Authority, sets out licensing, governance, and oversight requirements for businesses conducting crypto mining activities from an international financial center in the region.

Under the guidance, crypto mining will be treated as a licensable commercial activity overseen by the Registration Authority rather than a regulated financial service.

The framework also draws a distinction between commercial mining and activities regulated by ADGM’s Financial Services Regulatory Authority (FSRA), with a pre-application self-assessment to help operators determine the appropriate regulatory requirements.

Businesses will be expected to disclose their corporate structures, ultimate beneficial ownership, and, on a confidential basis, blockchain addresses used to receive mining rewards.

Regulatory oversight will be proportionate to the size and risk profile of each operation, with additional provisions for ADGM-registered headquarters overseeing international activities.