ADGM Sets Licensing Rules for Commercial Crypto Mining

Abu Dhabi Global Market has published guidance requiring commercial crypto mining operators to hold a business licence, drawing a line between mining and regulated financial services inside the financial free zone.

The rules, announced on Wednesday and issued under Section 23 of ADGM's Commercial Licensing Regulations 2025, put crypto mining under the supervision of the Registration Authority and assign it commercial activity code 7230. Both proof-of-work mining, which uses computing power to validate blockchain transactions, and proof-of-stake validation, which relies on staked digital assets, fall within scope.

Operators that mine or validate for their own accounts do not automatically need authorisation from the Financial Services Regulatory Authority. Businesses that manage or hold third-party digital assets may still need separate financial services permission. Small-scale non-commercial mining by individuals generally sits outside the guidance, as does incidental blockchain validation that generates no material revenue and offers no mining services to third parties.

Applicants must disclose corporate structures and ultimate beneficial owners to the RA, along with confidential information about the blockchain addresses that receive mining rewards. Larger applicants face additional questions covering equipment, operating plans, physical locations, cybersecurity arrangements and risk management procedures.

Supervision is risk-based and scaled to the size and nature of each operation, including ADGM-headquartered businesses that oversee mining activities overseas. Anti-money laundering obligations depend on what a company actually does.

The policy has been in development since earlier this year, starting with a discussion paper published on January 28 and a public feedback window that ran until March 20. It forms part of ADGM's wider digital asset framework, which separately governs financial activities involving virtual assets.

The authority said it is the first international financial centre in the region to issue dedicated crypto mining guidance. A second phase will produce a formal regulatory framework, with a further market consultation expected. Until then, mining companies seeking a licence work from guidance rather than settled rules, and the disclosure requirements — particularly on reward addresses — give the regulator a view of cash flows before it has a full regime to enforce.