The Abu Dhabi Global Market (ADGM) Registration Authority (RA) has released a new discussion paper outlining a proposed regulatory framework for cryptocurrency mining activities. The initiative aims to provide clear guidance for the sector, fostering responsible innovation while upholding high standards of governance within the international financial centre.
A Framework for Responsible Innovation
The proposals detailed in Discussion Paper No. 1 of 2026 are designed to formalize crypto mining by establishing a dedicated commercial licensing framework. Under the proposed guidance, crypto mining would be treated as a licensed commercial activity rather than a regulated financial service, clarifying its legal standing within ADGM.
This move is intended to create a transparent and stable environment for operators, encouraging responsible growth and positioning Abu Dhabi as a well-regulated hub for the digital asset industry.
Technology-Neutral and Risk-Based Oversight
ADGM has adopted a technology-neutral approach, ensuring the framework remains relevant as the industry evolves. The guidance applies to all consensus mechanisms, including the established Proof-of-Work (PoW) and Proof-of-Stake (PoS) models, as well as any future technologies that may emerge.
Regulatory oversight will follow a risk-based model, allowing supervision to be tailored to the scale, complexity, and specific risks of each mining operation. This flexible approach ensures that regulations are proportionate and do not stifle innovation.
Governance and Global Standards
A key focus of the proposed framework is establishing strong governance and transparency standards. Entities engaging in crypto mining will be required to maintain corporate transparency, fully disclose beneficial ownership, and ensure operational integrity.
The guidance also provides clear oversight for ADGM-registered entities that act as headquarters for managing overseas crypto mining operations. This provision aims to maintain consistent governance and operational standards across an entity’s global footprint, reinforcing ADGM’s commitment to international best practices.
Call for Industry Feedback
ADGM is inviting a broad range of stakeholders to provide feedback on the discussion paper. This includes entities currently involved in crypto mining, headquarters managing global operations, and service providers such as technology vendors, auditors, and legal consultants.
The consultation period is open until March 20, 2026, offering the industry a crucial opportunity to help shape the future of crypto mining regulation in the region.
About ADGM
Abu Dhabi Global Market (ADGM) is an international financial centre and free zone located on Al Maryah Island in the capital of the United Arab Emirates. Established in 2015, it provides a world-class regulatory framework and business environment for financial institutions, fintech startups, and global corporations, serving as a strategic link between the growing economies of the Middle East, Africa, and South Asia and the rest of the world.
Source: Fintech News AE
