The Abu Dhabi Global Market (ADGM) Registration Authority, on 28 January 2026, has launched a public consultation on a proposed regulatory framework (Discussion Paper No. 1/2026) for crypto mining activities conducted within or from the financial free zone. This initiative aims to provide clarity and support responsible innovation in the crypto mining sector. Crypto mining is the process of verifying transactions on a blockchain network, like Bitcoin or Ethereum, using powerful computers to solve complex math problems.
Key Aspects of the Proposal:
- Crypto mining is regulated as a licensed commercial activity, rather than a financial service, under the Registration Authority.
- Technology-neutral approach applies to all consensus mechanisms, including Proof-of-Work (PoW), Proof-of-Stake (PoS), and future technologies.
- Governance and compliance expectations include: corporate transparency, disclosure of beneficial ownership, and operational integrity standards.
- Risk-based supervisory oversight, with scrutiny based on the scale and complexity of mining operations.
- ADGM-registered entities managing overseas crypto mining operations must maintain consistent governance and control through global headquarters oversight.
Objective and Next Steps:
The proposal aims to balance regulatory clarity with the need to support innovation and strong governance in the crypto mining ecosystem. The consultation period is open until 20 March 2026, inviting feedback from:
- ADGM-registered entities engaged in or planning crypto mining activities
- ADGM-registered headquarters overseeing global crypto mining operations
- Service providers, technology vendors, auditors, and other industry stakeholders
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