ADGM floats a licensing framework for crypto mining

UAE officials are trying to get ahead of a problem that keeps showing up in every fast-growing crypto hub: mining operations can scale quickly, but rules often lag behind the hardware.

Abu Dhabi Global Market (ADGM) said its Registration Authority has published Discussion Paper No. 1 of 2026, a proposal that would spell out how crypto mining should be handled when it is conducted within, or managed from, the ADGM free zone. The consultation is open for comments until March 20, 2026.

In the paper, ADGM frames crypto mining as the work of validating transactions on a decentralized ledger or infrastructure network in exchange for rewards paid out in digital assets. That definition matters because it places mining closer to data-center operations than to trading or brokerage. Under the draft, mining would sit in the commercial world, not the financial one.

ADGM wants to license crypto mining as a commercial activity overseen by the Registration Authority, rather than treating it as a regulated financial service. The paper also takes a technology-neutral stance, meaning the guidance would apply whether a network relies on proof of work, proof of stake, or another consensus method.

The proposal leans heavily on governance and disclosure. ADGM is signaling that mining firms should expect requirements around corporate transparency, beneficial ownership reporting, and basic operational integrity controls. Supervisory oversight would be risk-based, with expectations rising alongside the size and complexity of a mining operation.

One element aimed at larger players is cross-border supervision. The framework is designed to cover ADGM-registered entities that run or coordinate mining fleets outside the UAE, pushing those headquarters to maintain consistent standards across overseas sites. 

ADGM is seeking feedback from firms already mining (or planning to), as well as service providers, technology vendors, and auditors. For the UAE, which has been pitching itself as both a finance and infrastructure hub, the move is another sign that regulators are looking beyond exchanges and stablecoins and into the plumbing of the industry.