ADGM Registration Authority releases Discussion Paper No. 1 of 2026. The paper outlines proposed rules for ADGM crypto mining in Abu Dhabi Global Market (ADGM). It invites feedback from industry players to shape clear regulations.
Broad Scope of Rules
The authority targets crypto mining done inside ADGM or run from there. Operators use various methods to validate blockchain transactions. These include Proof-of-Work (PoW), Proof-of-Stake (PoS), and new tech yet to come.
This approach stays neutral on technology. It avoids favoring one system over another. Regulators want to support innovation while keeping strong controls in place.
Licensing as Business Activity
ADGM treats crypto mining like regular business work. Firms apply for commercial licenses through the Registration Authority. They skip the stricter financial services rules from the Financial Services Regulatory Authority (FSRA).
License seekers prove they meet basic standards. They show solid setup, good governance, and risk controls. This setup lets businesses start faster without heavy red tape.
Key Governance Standards
Companies must reveal who really owns them. They share details on beneficial owners to fight hidden control. Daily operations need checks for honesty and safety.
Leaders focus on cybersecurity and system strength. They guard against hacks and downtime. Backup plans ensure mining runs smoothly even in tough times.
Risk-Based Supervision
The RA watches operations based on size and risk level. Small setups face lighter checks. Big players with complex links get closer review. This method saves time and resources. It puts effort where problems might grow. Supervisors check records, sites, and third-party ties as needed.
Handling Overseas Work
ADGM firms run mines abroad too. The rules give clear steps for headquarters control. Parent companies set global policies on tech, risks, and reports. This keeps standards high everywhere. It cuts issues from weak spots overseas. Firms report key data back to ADGM for full oversight.
Who Should Respond
Current miners in ADGM get a direct call to join. New entrants planning setups must weigh in. Global HQ teams, tech sellers, auditors, and service firms also qualify. The paper asks for views on license terms, disclosure rules, and oversight tools. Players share ideas on what works and what needs fixing.
Next Steps Ahead
Feedback pours in until March 20, 2026. The RA reads all input carefully. It plans to update the guidance based on real-world advice. This move positions ADGM as a top spot for crypto work. It balances growth with safety in the UAE’s fast digital asset scene. Firms watch closely as rules take shape.
