Abu Dhabi's Crypto Blueprint Draws Miners, Funds and Global Giants

Abu Dhabi has established one of the world’s clearest frameworks for crypto and blockchain companies, attracting miners, funds, and global firms through early regulation, tax breaks, and sovereign support.

The Financial Services Regulatory Authority (FSRA) has licensed virtual asset activity since 2018 via the Abu Dhabi Global Market (ADGM), a financial free zone with its own courts. Only approved ‘Accepted Virtual Assets’ can be used in regulated products; privacy tokens and algorithmic stablecoins are barred. Capital requirements vary by business size, and a Reglab sandbox allows supervised testing.

Major platforms have secured licenses. Binance obtained full ADGM approvals for trading, clearing, and brokerage through separate Nest-branded entities. Galaxy Digital opened an ADGM office, and BNY is building regulated crypto custody. Circle and other stablecoin firms gained permissions, and Tether’s USDT was recognized as an accepted asset. A Fiat-Referenced Token framework, refined through 2025 and taking fuller effect in 2026, provides a path for regulated stablecoin issuers.

Tax incentives are strong: qualifying income in free zones has a 0% corporate tax rate, no personal income or capital gains tax, and full foreign ownership. Golden Visas encourage relocation.

Sovereign capital plays a key role. Mubadala Investment Company backs Hub71, a startup accelerator with a digital assets track. The Blockchain Center Abu Dhabi works on adoption projects including AE Coin, a dirham-linked stablecoin, while Avalanche’s DLT Foundation uses its ADGM base for regional partnerships.

Bitcoin mining shows industrial scale. Citadel Mining, tied to Abu Dhabi’s Royal Group, holds about 6,996 BTC (worth roughly $451 million) built through mining since 2022. Public miner MARA Digital partnered with Abu Dhabi-linked Zero Two on immersion-cooled mining. Authorities have banned mining on agricultural land, pushing operators to industrial and free-zone sites.

Sovereign wealth funds are also taking exposure via Bitcoin ETFs. Mubadala Investment Company raised its BlackRock IBIT stake 16% to 14.7 million shares in Q1 2026, valued at about $566 million. Al Warda Investments held about 8.2 million IBIT shares at end-2025. Combined, the two funds’ IBIT positions topped $1 billion at year-end 2025 prices.

Tokenization is also drawing sovereign capital. Mubadala Capital partnered with KAIO to bring its Alternative Solutions Fund onchain across Base, Solana, and Sui networks, drawing about $75 million onchain. Total value locked stood at $39.66 million as of August 5.

Competition between free zones, including Dubai’s VARA framework, continues to drive regulatory clarity. Key developments to watch include the Fiat-Referenced Token framework’s evolution through 2026, Mubadala’s next 13F filing for IBIT position changes, and any updates on the farm-mining ban affecting miner expansion.

Source: https://news.bitcoin.com/featured/abu-dhabis-crypto-blueprint-draws-miners-funds-and-global-giants/