Highlights:
- Right now, 4% of the world’s Bitcoin mining capacity is in the UAE. As a result, nations like the US, China, and Russia face severe rivalry.
- To lower the expense of mining Bitcoin, the United Arab Emirates is switching to atomic and sun based power. In this manner, the UAE hopes to become carbon-neutral by 2050.
- Because of its distinct autonomy and stringent laws, the UAE is becoming a key hub for blockchain development and Bitcoin mining.
The UAE is a significant player in the global cryptocurrency business, claims CNBC Arabia. Its creative energy options are to blame for this. One of the largest hydro-cooling mining sites on Earth was constructed in the region more than three years ago. The UAE, which currently has 4% of the world’s Bitcoin hashrate, is becoming a contender to big mining nations such as the United States, China, and Russia.
UAE’s Advantage in Renewable Energy
In an effort to achieve net-zero carbon emissions by 2050, the promotion of nuclear power, solar energy, and renewable energy sources was implemented. These renewable energy sources lower significant energy expenses associated with Bitcoin mining.
The regulatory agencies in the United Arab Emirates have made sure that mining operations adhere to environmental regulations. Furthermore, if the business keeps growing, the country might move up in the rankings of countries that support Bitcoin mining worldwide.
The Effect of Laws on Crypto Mining
The regulatory framework in the United Arab Emirates is essential to maintaining and expanding bitcoin activity. Laws for protecting investors were set in Section 2021 of the Emirates Blockchain Strategy. The reason of these rules is to discourage unlawful action, especially money laundering.
The system is solid since different cryptocurrency categories are supervised by numerous regulatory agencies. Bitcoin and other virtual currencies are governed by the Central Bank of the United Arab Emirates. Securities tokens are managed by the Securities and Commodities Authority (SCA).
Companies may also benefit from the several free zones established, especially for Bitcoin activities. The free zones in Abu Dhabi and Ras Al-Khaimah have varying degrees of regulatory liberty. Because of these zones, businesses are able to choose the ideal operating environment for their requirements based on project specifications.
