ADGM Establishes Dedicated Licensing Guidance For Crypto Mining Arabian Post

(MENAFN- The Arabian Post) clearfix">

Arabian Post Staff -Dubai

Abu Dhabi Global Market (ADGM) has issued dedicated guidance governing cryptocurrency mining operations, becoming the first international financial centre in the region to establish comprehensive commercial licensing and governance expectations for the sector.

The guidance, published by ADGM's Registration Authority, establishes crypto mining as a licensable commercial activity rather than a regulated financial service. It applies to businesses conducting mining operations within or from the financial centre and clarifies their licensing obligations, supervisory requirements and corporate governance responsibilities.

Issued under Section 23 of the Commercial Licensing Regulations 2025, the framework introduces a dedicated commercial licence for cryptocurrency mining under business activity code 7230. Operators must obtain authorisation from the Registration Authority, which will oversee compliance according to the scale and risk profile of individual businesses.

The authority has also clarified the division of responsibilities between itself and ADGM's Financial Services Regulatory Authority (FSRA). Commercial mining operations fall under the Registration Authority, while activities constituting regulated financial services remain subject to the FSRA's jurisdiction.

A pre-application self-assessment mechanism will help businesses determine whether their proposed operations fall within commercial mining or require separate financial regulatory approval.

The guidance adopts a technology-neutral approach, covering proof-of-work, proof-of-stake and future blockchain consensus mechanisms. This allows the licensing framework to accommodate different technologies without restricting oversight to particular cryptocurrencies or mining systems.

Rashed Al Blooshi, chief executive of ADGM's Registration Authority, said the initiative provides businesses with greater certainty about licensing and supervision while establishing expectations for transparency and operational integrity.

“With this Guidance, ADGM is open to responsible crypto mining,” Al Blooshi said, emphasising that supervision would be proportionate to the scale and risks associated with individual operators.

See also UAE and Greece unveil €12.75 billion partnership package

He said Abu Dhabi's expanding digital infrastructure had strengthened the relationship between energy, technology and investment, creating opportunities for businesses operating across blockchain networks and associated infrastructure.

Corporate transparency forms a central component of the guidance. Licensed entities must disclose their ownership structures, including information identifying ultimate beneficial owners, enabling the Registration Authority to assess accountability and corporate control.

Operators must also confidentially disclose blockchain addresses associated with mining reward flows. These disclosures are intended to provide supervisory visibility into the movement of digital assets generated through mining activities.

The requirements distinguish commercial mining from financial intermediation while recognising that cryptocurrency operations can involve complex ownership arrangements, cross-border transactions and financial crime risks.

Supervision will follow a risk-based model rather than imposing identical requirements on every operator. The Registration Authority will consider operational scale, business complexity and individual risk characteristics when determining appropriate oversight.

The guidance additionally addresses businesses establishing headquarters within ADGM while managing mining facilities internationally. Such companies will fall under a reasonable-oversight approach that recognises the distinction between headquarters governance responsibilities and operations conducted outside the financial centre.

This provision is relevant to mining businesses whose management, investment and corporate functions are based in Abu Dhabi while their computing infrastructure operates across other jurisdictions.

The authority described the publication as the first stage of a broader regulatory programme. A second phase will involve developing a dedicated regulatory framework for cryptocurrency mining, with market participants invited to provide feedback during a future consultation.

No timetable has been announced for completing that second phase, and the guidance should not be confused with a fully developed regulatory regime governing every aspect of mining activity.

See also Governments explore alternative currency bonds as funding tightens

The publication follows an eight-week public consultation launched earlier this year. The Registration Authority said substantive responses from stakeholders helped shape the final guidance and its approach to licensing, governance and supervision.

The consultation process began with a discussion paper published on 28 January 2026, inviting submissions from existing and prospective mining operators, international headquarters, technology providers, auditors and other interested businesses.

That exercise sought views on commercial licensing, corporate governance, operational integrity and the supervision of mining activities conducted within or from ADGM.

The consultation closed on 20 March, allowing the authority to examine industry feedback before issuing its guidance in October.

ADGM's existing commercial licensing arrangements require businesses operating within its jurisdiction to hold appropriate authorisation and comply with applicable legislation. The mining guidance specifies how those obligations apply to blockchain validation businesses.

The Registration Authority is responsible for company incorporation, registration and commercial licensing within ADGM, while the FSRA supervises regulated financial activities, including relevant virtual asset services.

The new guidance also covers ADGM-registered headquarters supervising overseas mining operations, with oversight expectations reflecting their actual management responsibilities and operational exposure.

MENAFN29102026000152002308ID1111883301