The United Arab Emirates (UAE) is attracting more Bitcoin miners who are looking for a favorable environment to operate in the Middle East.
According to a report by Bloomberg, the UAE has several advantages that make it an appealing destination for Bitcoin mining, such as low electricity costs, political stability, and a supportive regulatory framework.
The report cites the example of BitOasis, a Dubai-based crypto exchange and custodian that recently obtained a license from the Financial Services Regulatory Authority of Abu Dhabi to operate as a regulated crypto asset platform.
BitOasis also offers Bitcoin mining services to its clients, using renewable energy sources such as solar and wind power to reduce the environmental impact of the activity.
Another company that is involved in Bitcoin mining in the UAE is iMiner, a Turkey-based firm that opened a facility in Dubai in 2020. The company claims to have 6,000 mining rigs and a capacity of 96,000 terahash per second.
The UAE’s interest in Bitcoin mining is part of its broader vision to become a hub for innovation and technology in the region. The country has launched several initiatives to promote the adoption of blockchain, digital assets, and fintech solutions.
For instance, the UAE Central Bank is working on a digital currency project with the Saudi Arabian Monetary Authority, while the Dubai Future Foundation is developing a blockchain-based digital court system.
The UAE is also home to several crypto-friendly businesses and organizations, such as DMCC, a free trade zone that offers licenses for crypto trading and storage, and Binance, the world’s largest crypto exchange that has set up an office in Abu Dhabi.