ADGM Sets Out Dedicated Crypto Mining Guidance With Licence Route

Abu Dhabi Global Market has published dedicated guidance for crypto mining, a document it says makes it the first international financial centre in the region to set out comprehensive rules for the activity.

The paper is titled 'Guidance on Crypto Mining Activities in and from ADGM'. It opens a commercial licensing route for operators that conduct or manage mining within the centre or from it, and it sets governance, ownership, transparency and supervisory expectations for the firms that take that route.

A commercial licence, not a financial one

Commercial mining is treated as a licensable business activity overseen by ADGM's Registration Authority. It does not, by itself, count as a regulated financial service under the Financial Services Regulatory Authority. Firms that want to operate must hold a Commercial Licence covering crypto mining under business activity code 7230.

The framework is technology-neutral. It covers traditional Proof-of-Work mining, Proof-of-Stake validation carried out on a firm's own account, and consensus mechanisms that have not been designed yet.

ADGM introduced its virtual-asset framework in 2018. The new document adds a dedicated commercial track for crypto infrastructure businesses to that ecosystem.

Supervision sized to the operation

Rashed Al Blooshi, chief executive of the Registration Authority, placed mining at the meeting point of digital infrastructure, energy, technology and capital. He said the guidance gives responsible operators a clear commercial licensing route, sets proportionate supervision according to scale and risk, and provides greater certainty about where the regulatory boundary sits.

The framework is meant to clarify the rules for mining operators that establish in Abu Dhabi or use ADGM as an international headquarters.

Applicants of a larger size may be asked for detail on proposed mining hardware and software, operating scale, hash rate, the number of mining units and the physical locations where they run. The Registration Authority may also seek a risk-management framework covering operational, technical and security risks, plus infrastructure and resilience plans that address physical security, cybersecurity, heat management and business continuity.

Where licensing stops

The guidance draws a line between commercial mining and small-scale personal activity. Individuals mining for their own purposes generally fall outside the licensing scope. Blockchain nodes or validators run incidentally in support of another licensed activity may also sit outside the framework, provided validation rewards are immaterial and the firm offers no mining or validation services to third parties.

Separating commercial mining from services that touch customers' digital assets is a central element of the document.

Mining or validating with a firm's own capital and assets generally stays within the Registration Authority's commercial regime. Companies that supply technical infrastructure without controlling customer assets can fall under it as well. Receiving, holding, controlling or managing third-party digital assets for staking or validation can trigger regulated activities under ADGM's Financial Services and Markets Regulations, and those businesses may need a separate Financial Services Permission from the FSRA on top of the commercial mining licence.

Safeguarding third-party digital assets is potentially regulated. So are distributing staking rewards to clients, exercising discretion over customer assets and pooling third-party assets for collective staking or mining. A pre-application self-assessment is available to help firms work out where they sit across the two perimeters.

The split follows the FSRA's separate virtual-asset staking framework, finalised earlier in 2026, which covers authorised firms running staking activities that involve clients' assets.

Disclosure and oversight

Licensed mining businesses face transparency requirements on ownership, management and digital-asset flows. They must keep information on ultimate beneficial owners, corporate structures and management up to date, and notify the Registration Authority of material changes.

Operators are expected to disclose, confidentially, the blockchain wallet and smart-contract addresses they use to receive or manage mining or validation rewards, where those addresses are owned or controlled by the licensed entity. Disclosed addresses are treated as confidential supervisory information rather than public information. The Registration Authority may use third-party technology to monitor them on-chain.

Supervision is calibrated to risk. Larger operations and businesses serving third parties can expect more intensive oversight, through off-site monitoring, on-site inspections, independent audits, thematic reviews and formal information requests. Serious breaches may bring financial penalties, remediation orders, or suspension or revocation of a commercial licence.

Headquarters with mines elsewhere

The framework addresses a structure that is common in the sector: a company headquartered in ADGM that manages mining infrastructure in other countries. Such firms may need to disclose overseas mining locations, operating capacity, hash rates, ownership structures, subsidiaries and key management personnel. They are also expected to run risk-based due diligence on jurisdictions, international partners and major contractors, and to keep governance oversight of the overseas businesses.

The emphasis is on governance accountability rather than day-to-day control of every facility abroad. The Registration Authority may request periodic information on global operations, and may cooperate with overseas regulators through information-sharing arrangements. For international mining groups, the model offers a route to an ADGM headquarters in exchange for disclosure, governance and supervisory expectations.

First phase of a longer process

The document is the first phase of ADGM's approach. The Registration Authority opened a public consultation in January 2026 and took feedback until March, drawing responses from mining companies, global mining headquarters, technology providers, auditors and other market participants. The consultation examined commercial licensing, technology neutrality, beneficial ownership, risk-based supervision and oversight of mining groups with international operations.

ADGM describes the published document as non-binding indicative guidance, to be read alongside the Commercial Licensing Regulations 2025, Companies Regulations 2020 and other applicable legislation.

A second phase, subject to further market consultation, will develop a broader regulatory framework for crypto mining. That is where the centre moves past indicative guidance and a licensing route toward a full regime for the sector.