Introduction

There is no single law governing cryptocurrency mining across the Middle East. The legal position varies substantially by jurisdiction, and electricity policy can be just as important as financial regulation. Iran has a dedicated licensing framework for authorized miners, Kuwait expressly prohibits virtual-asset mining, while Oman and the United Arab Emirates have permitted or recognized commercial mining activities under broader business, free-zone, tax, and local regulatory structures. In several other jurisdictions, governments regulate cryptocurrency trading or virtual-asset services without clearly addressing mining itself.

As of August 26, 2026, this guide compares the crypto mining laws in the Middle East across Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, Türkiye, the United Arab Emirates, and Yemen.

Is Crypto Mining Legal in the Middle East?

Crypto mining is legal in parts of the Middle East, but the rules vary by country. Iran permits licensed mining under a specific regulatory and electricity regime, Oman hosts government-supported commercial mining facilities, and the UAE recognizes mining while applying federal tax rules and jurisdiction-specific restrictions. Kuwait, by contrast, expressly prohibits all virtual-asset mining activities. In many other Middle Eastern countries, no authoritative mining-specific legal framework has been identified, so their status is best described as Unclear / No Specific Mining Regulation.

Crypto Mining Laws in the Middle East at a Glance

Country	Mining Status	Home Mining	Commercial Mining	Licence / Registration	Key Restriction or Rule
Bahrain	Unclear / No Specific Mining Regulation	Unclear	Depends on activity	No mining-specific licence identified	CBB crypto-asset rules regulate financial services but do not establish a general mining regime
Iran	Legal but Regulated	Restricted	Licensed	Mining authorization required	Licensed miners face electricity and operating requirements; unauthorized/subsidized-power mining is restricted
Iraq	Unclear / No Specific Mining Regulation	Unclear	Unclear	No mining-specific licence identified	Crypto trading/payment channels are restricted; a broader virtual-asset framework is being developed
Israel	Unclear / No Specific Mining Regulation	Unclear	Depends on activity	No mining-specific licence identified	Mining has tax and business consequences, including VAT treatment
Jordan	Unclear / No Specific Mining Regulation	Unclear	Unclear	No mining-specific licence identified	2025–2026 VASP licensing framework focuses on platforms, brokers, custody and issuance
Kuwait	Prohibited	Prohibited	Prohibited	No	2023 regulatory circulars impose an absolute ban on virtual-asset mining
Lebanon	Unclear / No Specific Mining Regulation	Unclear	Unclear	No finalized mining-specific regime identified	Authorities have considered treating mining as an industrial activity; misuse of the public electricity network can trigger enforcement
Oman	Legal but Regulated	Unclear	Regulated	Project, business and free-zone approvals may apply	Government-supported commercial crypto-mining facilities operate in Salalah Free Zone
Qatar	Unclear / No Specific Mining Regulation	Unclear	Unclear	No mining-specific licence identified	Digital-asset rules primarily concern tokenization and related services rather than mining
Saudi Arabia	Unclear / No Specific Mining Regulation	Unclear	Unclear	No mining-specific licence identified	Official crypto warnings do not establish a specific Bitcoin-mining prohibition
Syria	Unclear / No Specific Mining Regulation	Unclear	Unclear	No mining-specific framework identified	Central bank says digital-currency dealings are unlawful, but its 2025 warning did not establish a separate mining rule
Türkiye	Unclear / No Specific Mining Regulation	Unclear	Unclear	No mining-specific licence identified	Crypto-payment restrictions and CASP licensing do not constitute a mining prohibition
United Arab Emirates	Legal but Regulated	Depends on location/use	Regulated	Business and local approvals may apply	Federal tax rules recognize mining; local restrictions apply, while ADGM proposed a dedicated commercial framework in 2026
Yemen	Unclear / No Specific Mining Regulation	Unclear	Unclear	No mining-specific framework identified	No reliable nationwide cryptocurrency-mining regime was identified

Country-by-Country Crypto Mining Laws in the Middle East

Gulf States

Is Crypto Mining Legal in Bahrain?

Cryptocurrency mining in Bahrain is best classified as Unclear / No Specific Mining Regulation because Bahrain has detailed crypto-asset financial regulation but no authoritative nationwide mining-specific framework was identified as of August 26, 2026.

The Central Bank of Bahrain (CBB) regulates crypto-asset services such as trading, dealing, custody and exchange operations. Importantly, the existence of a CBB crypto licence should not be interpreted as meaning that cryptocurrency mining itself requires the same financial-services licence. The CBB’s crypto-asset framework defines the financial activities falling within its supervision, while an earlier CBB platform-operator rule expressly excluded the development or use of software for creating or mining crypto assets from regulated crypto-asset services.

That exclusion does not amount to a nationwide declaration that unrestricted home or industrial Bitcoin mining is permitted. A commercial mining facility could still require ordinary company registration, premises approvals, electricity arrangements and any other permits applicable to its physical operations.

Accordingly, Bahrain should not be labelled either a crypto-mining ban country or a clearly licensed mining jurisdiction. The most defensible 2026 position is that no dedicated mining regulatory regime has been identified, while other generally applicable business and infrastructure rules can still apply.

Is Crypto Mining Legal in Kuwait?

Cryptocurrency mining is prohibited in Kuwait. Kuwait is one of the clearest Middle Eastern jurisdictions because official 2023 rules expressly impose an absolute prohibition on virtual-asset and cryptocurrency mining activities.

On July 17, 2023, Kuwait’s Ministry of Commerce and Industry issued Ministerial Circular No. 1 of 2023. The circular prohibits using virtual assets as payment, dealing in them as an investment medium, licensing virtual-asset service businesses, and all virtual-asset or cryptocurrency mining activities. The Capital Markets Authority issued substantially corresponding requirements in Circular No. 10 of 2023, published on July 18, 2023.

Kuwait’s position is therefore stronger than a restriction on exchanges or banking services: mining itself is expressly covered. There is no lawful mining-specific licence that converts otherwise prohibited mining into an authorized activity under these circulars.

Enforcement has also been tied to electricity policy. On April 22, 2025, Kuwait’s Ministry of Interior warned that illegal cryptocurrency mining could threaten the national power grid and stated that such activities were prohibited by state law.

For both home and commercial miners, Kuwait should therefore be classified as Prohibited, not merely Restricted.

Is Crypto Mining Legal in Oman?

Commercial cryptocurrency mining is permitted in Oman through approved projects, making Oman best classified as Legal but Regulated; however, the existence of authorized mining facilities does not establish that unrestricted home mining is permitted.

Oman’s clearest official evidence comes from large commercial projects. On August 13, 2023, the Oman News Agency reported the inauguration of the first phase of a data-processing and cryptocurrency-mining centre operated by Exahertz International in Salalah Free Zone. The $348 million project was inaugurated under the auspices of the Minister of Transport, Communications and Information Technology and was explicitly described by the state news agency as a cryptocurrency-mining facility.

This demonstrates that cryptocurrency mining can operate legally as an approved commercial activity in Oman. It does not, however, establish a general household-mining entitlement or a single national “Bitcoin mining licence” available to all operators. Large projects can involve free-zone licensing, company establishment, land, data-centre infrastructure and electricity arrangements.

Oman’s Capital Market Authority and financial-sector rules concerning virtual assets should also not automatically be treated as mining regulations. For individuals considering home mining, no sufficiently clear authoritative mining-specific rule was identified to classify ordinary residential mining as expressly allowed.

Is Crypto Mining Legal in Qatar?

Cryptocurrency mining in Qatar is best classified as Unclear / No Specific Mining Regulation because Qatar’s increasingly developed digital-asset regime does not clearly establish a separate legal framework for proof-of-work mining.

On September 1, 2024, the Qatar Financial Centre (QFC) launched its Digital Assets Framework 2024. The framework provides rules for areas such as tokenization, ownership of tokens, custody, transfers, exchanges and smart contracts. QFC firms can also obtain licences for specified token-service-provider activities.

Those activities should not be conflated with Bitcoin mining. Nothing in the official QFC material reviewed establishes a general cryptocurrency-mining licence or an explicit nationwide mining prohibition. Likewise, restrictions that Qatar has historically applied to cryptocurrency financial services or banking relationships do not automatically prohibit an individual from operating computing hardware to participate in a proof-of-work network.

Consequently, neither Legal nor Prohibited is sufficiently supported as a blanket classification. Commercial operators would still need to assess ordinary business, electricity, premises and technology rules, but these should not be described as a mining-specific licensing system without further authority.

Is Crypto Mining Legal in Saudi Arabia?

Cryptocurrency mining in Saudi Arabia is best classified as Unclear / No Specific Mining Regulation because official warnings concerning cryptocurrencies do not establish a dedicated prohibition or licensing framework for Bitcoin mining.

Saudi authorities have historically taken a cautious approach to cryptocurrency. In August 2019, the Ministry of Finance warned against dealing or investing in virtual currencies, noting that cryptocurrencies were outside the Kingdom’s regulatory framework and were not traded through locally regulated financial institutions. Earlier warnings likewise focused principally on investment, trading, fraud and consumer risk.

The Law Library of Congress concluded in its January 2025 review that, as of December 2024, Saudi Arabia had not enacted specific cryptocurrency legislation and that cryptocurrency was not explicitly prohibited, although it lacked formal legal recognition.

None of those findings establishes a mining-specific rule. A warning against cryptocurrency investment should therefore not be rewritten as “Bitcoin mining is banned in Saudi Arabia.”

As of August 26, 2026, no authoritative national Bitcoin-mining licensing framework was identified. Commercial operators would still need to comply with generally applicable Saudi company, land, electricity and industrial requirements where relevant, but those should be distinguished from a dedicated cryptocurrency-mining licence.

Is Crypto Mining Legal in the United Arab Emirates?

Cryptocurrency mining is best classified as Legal but Regulated in the United Arab Emirates, although regulation is fragmented and miners must distinguish federal tax rules from emirate-level, free-zone, commercial and land-use requirements.

At federal level, the UAE Federal Tax Authority expressly addresses proof-of-work mining in Public Clarification VATP039, published on January 14, 2025. Mining cryptocurrency for one’s own account falls outside the scope of VAT because it is not treated as a taxable supply, while supplying computational power to mine on behalf of another person is treated as a taxable supply of services. Recognition in the tax framework is strong evidence that mining is not subject to a blanket federal prohibition.

Rules can nevertheless differ locally. Abu Dhabi authorities announced in September 2025 that cryptocurrency mining on agricultural land and farms was prohibited, with enforcement measures including fines, power disconnection and equipment confiscation. That local restriction should not be generalized into a UAE-wide mining ban.

Abu Dhabi Global Market (ADGM) separately published Discussion Paper No. 1 of 2026 on January 28, 2026. It proposed treating crypto mining as a licensed commercial activity under the ADGM Registration Authority rather than a financial service. The consultation closed on March 20, 2026, and the ADGM consultation page continued to describe the measure as proposed guidance rather than final rules.

Therefore, UAE miners must check the rules applying to their specific emirate, free zone, property and business structure instead of assuming that a VARA, FSRA or other virtual-asset financial licence automatically covers mining.

Levant

Is Crypto Mining Legal in Israel?

Cryptocurrency mining in Israel is best classified as Unclear / No Specific Mining Regulation because mining has identifiable tax consequences but no dedicated mining-licensing framework was identified.

Israel provides more clarity on the taxation of mining than on mining authorization itself. The Israel Tax Authority treats virtual currency as an asset for tax purposes, and Law Library of Congress analysis of Israel Tax Authority Circular No. 05/2018 states that a person engaged in cryptocurrency mining can be classified as a “dealer” for VAT purposes.

The Israel Tax Authority continues to maintain an active digital-assets tax framework. Its Digital Assets portal, updated on March 2, 2026, consolidates income-tax reporting information, while taxpayers can report gains from virtual-currency disposals through the authority’s procedures.

Tax recognition does not itself create a mining licence or establish that every type of residential or commercial mining installation is automatically permitted. Mining conducted as a business may trigger ordinary business registration, tax and premises obligations.

For that reason, Israel should not be classified as having a dedicated “legal but regulated” mining regime comparable to Iran. The clearer statement is that mining is not governed by an identified mining-specific framework, while tax obligations can still arise from the activity.

Is Crypto Mining Legal in Jordan?

Cryptocurrency mining in Jordan is best classified as Unclear / No Specific Mining Regulation. Jordan enacted a significant virtual-asset framework in 2025, but the licensed activities identified by the Jordan Securities Commission do not establish a cryptocurrency-mining licence.

Law No. 14 of 2025 regulates dealings in virtual assets, and Regulation No. 94 of 2025 introduced licensing requirements for virtual-asset service providers. The regulation was published on December 16, 2025 and came into force 30 days later.

On January 15, 2026, the Jordan Securities Commission published draft executive instructions covering platform operators, virtual-asset custody, trading brokers and issuance or offering providers. Mining was not listed among the principal licensed activities described by the Commission.

This distinction matters. Jordan’s decision to regulate exchanges, brokers and custodians does not automatically create either a ban or authorization regime for proof-of-work mining. No authoritative mining-specific licensing or electricity framework was identified in the reviewed materials.

Accordingly, both home and commercial mining remain legally uncertain at the mining-specific level, although commercial operations would still need to comply with normal Jordanian company, premises, taxation and electricity laws.

Is Crypto Mining Legal in Lebanon?

Cryptocurrency mining in Lebanon is best classified as Unclear / No Specific Mining Regulation because authorities have considered a licensing model but the evidence reviewed does not establish a finalized nationwide mining law.

Lebanon’s MENAFATF mutual evaluation contains unusually specific discussion of mining. It states that the Cassation Public Prosecution was assigned to identify the legal nature of mining and proposed that the Ministries of Justice, Finance and Industry treat it as an industrial activity subject to the licensing and monitoring obligations applicable to industry. The document describes this as a proposed approach rather than a completed dedicated cryptocurrency-mining statute.

The same assessment reports enforcement against mining operations that interfere with or unlawfully use the public electricity network. This is an important distinction: action against electricity-network violations does not establish that every instance of cryptocurrency mining is prohibited.

Lebanon’s electricity conditions make power sourcing a particularly important compliance issue for miners, but practical difficulty or grid scarcity should not be equated with illegality.

Until a clear mining-specific legislative or licensing framework can be confirmed, the safest classification is therefore Unclear / No Specific Mining Regulation, with heightened regulatory risk for commercial operations and especially for any unauthorized use of public electricity.

Is Crypto Mining Legal in Syria?

Cryptocurrency mining in Syria is best classified as Unclear / No Specific Mining Regulation. Syria’s central bank has taken a restrictive position toward cryptocurrency transactions, but its August 2025 warning did not separately define or regulate cryptocurrency mining.

On August 19, 2025, the Central Bank of Syria warned against dealing in or investing in digital currencies. The state-run Syrian Arab News Agency reported that the central bank considered digital currencies unauthorized and stated that cryptocurrency purchase and sale transactions were legally invalid.

That is a significant restriction on the ability to use, trade or dispose of cryptocurrency. It does not, however, answer the separate legal question of whether operating proof-of-work hardware constitutes a prohibited activity. The central-bank statement focused on cryptocurrency transactions, legal recognition, fraud and the absence of regulatory supervision rather than establishing a mining licence or an express mining offence.

Reliable mining-specific official information remains limited. Accordingly, describing Syria as having an explicit nationwide “Bitcoin mining ban” would go beyond the available evidence.

Miners would also face substantial practical infrastructure and compliance challenges, but those factors should not be substituted for a legal prohibition.

Iran, Iraq, Turkey and Yemen

Is Crypto Mining Legal in Iran?

Cryptocurrency mining is legal but heavily regulated in Iran. Authorized miners require government approval and must comply with specific electricity rules, while unauthorized mining and misuse of subsidized electricity can trigger enforcement.

Iran formally recognized cryptocurrency mining as an industrial activity in 2019. The framework requires miners to obtain authorization through the Ministry of Industry, Mine and Trade. The 2019 rules also separated mining electricity from subsidized household, agricultural and ordinary industrial tariffs, with mining energy priced under a special regime and restrictions applying during peak-consumption periods.

Iran therefore draws a sharp distinction between licensed mining and unauthorized mining. Ordinary residential electricity cannot simply be used as cheap power for an unlicensed mining farm. Equipment and operating sites can also fall under registration, industrial and energy-sector controls. This makes typical home mining considerably more restricted than licensed commercial mining.

Electricity policy can change temporarily when the grid is under stress. Such curtailments should be described as electricity-management measures rather than evidence of a permanent nationwide ban unless a specific measure says otherwise.

Iran also presents unusual sanctions risk. International counterparties must assess sanctions separately from Iranian domestic mining legality; state-approved mining has featured in international reporting concerning Iran’s use of cryptocurrency in cross-border financial channels.

Among the countries covered in this guide, Iran has one of the clearest distinctions between lawful licensed mining and unlawful unauthorized mining.

Is Crypto Mining Legal in Iraq?

Cryptocurrency mining in Iraq is best classified as Unclear / No Specific Mining Regulation because the Central Bank of Iraq has imposed restrictions on cryptocurrency dealings but has not established a clear mining-specific legal framework.

The Central Bank of Iraq warned on November 11, 2021 that digital, cryptocurrency and virtual currencies were not subject to legal, regulatory or technical controls in Iraq and that the bank had not licensed a cryptocurrency. On March 30, 2022, it prohibited the use of payment cards and electronic wallets for cryptocurrency speculation and trading.

Those measures concern dealing and payment channels rather than proof-of-work mining. They therefore should not be cited as evidence of a blanket mining prohibition.

Iraq’s regulatory position is also evolving. On December 14, 2025, the Central Bank of Iraq announced the first meeting of the National High Committee for Regulating Virtual Assets, which is working on an integrated national framework and a future licensing environment for digital, virtual and cryptocurrency assets.

Until that framework specifically addresses mining, a definitive “legal” or “banned” classification would be premature. Commercial mining operations may additionally face scrutiny under electricity, company, customs, anti-money-laundering and other generally applicable laws.

Is Crypto Mining Legal in Türkiye?

Cryptocurrency mining in Türkiye is best classified as Unclear / No Specific Mining Regulation because Türkiye regulates cryptocurrency payments and crypto-asset service providers but has not established a dedicated mining regime in the authoritative materials reviewed.

The Central Bank of the Republic of Türkiye’s Regulation on the Disuse of Crypto Assets in Payments was published on April 16, 2021 and entered into force on April 30, 2021. It prohibits the direct or indirect use of crypto assets for payments and places related restrictions on payment and electronic-money institutions. It does not prohibit cryptocurrency mining.

Türkiye subsequently brought crypto-asset service providers within the Capital Markets Board’s supervision through Law No. 7518, effective July 2, 2024. Secondary communiqués governing crypto-asset service providers came into force on March 13, 2025. These rules concern platforms, custody and regulated crypto services rather than proof-of-work mining.

Consequently, it would be inaccurate to state that Bitcoin mining is banned because crypto cannot be used for payments.

No separate nationwide mining licence was identified. Commercial miners would nevertheless be subject to ordinary company, tax, electricity, premises and equipment rules where applicable. Türkiye’s increasingly detailed crypto-service framework may evolve further, so mining operators should monitor whether future legislation expressly extends to miners.

Is Crypto Mining Legal in Yemen?

Cryptocurrency mining in Yemen is best classified as Unclear / No Specific Mining Regulation because no credible nationwide cryptocurrency-mining framework was identified as of August 26, 2026.

Yemen’s financial and regulatory environment remains fragmented, and current official-policy priorities are concentrated on monetary stability, banks, money exchangers, digital-payment infrastructure and anti-money-laundering controls. The IMF’s 2026 assessment describes ongoing reforms to financial supervision and digital financial infrastructure but does not identify a cryptocurrency-mining regime.

The FATF also continues to note that Yemen’s security situation has prevented a full on-site verification of parts of its anti-money-laundering and counter-terrorist-financing framework.

It would therefore be inappropriate to infer that mining is either expressly allowed or expressly banned. Yemen’s existing legislation using the word “mining” generally concerns physical mineral extraction and should not be confused with cryptocurrency mining.

Infrastructure constraints, power availability and political fragmentation can make mining difficult in practice, but practical difficulty is not a legal classification. Until a competent Yemeni authority publishes mining-specific rules, Unclear / No Specific Mining Regulation is the conservative position.

Which Middle Eastern Countries Allow Crypto Mining?

The clearest jurisdiction permitting cryptocurrency mining under a dedicated regulatory model is Iran, where mining has been recognized as an industrial activity but requires authorization and compliance with electricity rules. Iran is therefore not an unrestricted mining jurisdiction; the distinction between licensed and unauthorized mining is fundamental.

Oman clearly permits approved commercial mining projects. The government-supported facility inaugurated in Salalah Free Zone demonstrates that industrial-scale cryptocurrency mining can operate legally, although this does not establish a general right to mine from residential premises.

The United Arab Emirates also recognizes cryptocurrency mining as an economic activity. Federal VAT guidance specifically addresses proof-of-work mining, while emirate and free-zone rules can impose additional restrictions. The UAE is therefore better understood as a fragmented, regulated environment than as a single nationwide mining regime.

For Bahrain, Iraq, Israel, Jordan, Lebanon, Qatar, Saudi Arabia, Syria, Türkiye and Yemen, the absence of an identified mining prohibition should not be interpreted as confirmation that mining is affirmatively legal. Their mining-specific positions remain less clear.

Which Middle Eastern Countries Restrict or Ban Crypto Mining?

Kuwait has the clearest outright prohibition. Ministry of Commerce and Industry and Capital Markets Authority rules issued in July 2023 expressly prohibit all virtual-asset and cryptocurrency mining activities. Kuwait reinforced this position with electricity-related enforcement warnings in April 2025.

Iran restricts rather than prohibits mining. Licensed commercial mining is permitted, but unauthorized operations and the use of subsidized residential or other prohibited electricity supplies can result in enforcement.

The UAE applies narrower local restrictions. For example, Abu Dhabi has prohibited cryptocurrency mining on agricultural land. That restriction concerns where mining may occur and should not be misreported as a UAE-wide ban.

Other restrictions in the region require careful interpretation. Iraq restricts certain cryptocurrency trading and payment channels; Türkiye prohibits crypto payments; Syria considers cryptocurrency dealings unlawful; and Saudi authorities have warned against unregulated crypto investment. None of those rules, by themselves, establishes an explicit mining prohibition.

Which Middle Eastern Countries Require Crypto Mining Licences?

Iran has the clearest mining-specific authorization regime among the countries covered. Cryptocurrency mining was recognized as an industrial activity in 2019, with authorization administered through the Ministry of Industry, Mine and Trade and separate electricity requirements applying to lawful miners.

In Oman, approved commercial mining projects operate through established commercial and free-zone structures. These approvals should not automatically be described as a single nationwide “crypto mining licence” because the precise approvals can depend on the project, location, company structure and infrastructure arrangements.

In Abu Dhabi Global Market, the Registration Authority proposed in January 2026 that crypto mining become a licensed commercial activity rather than a financial service. As of August 26, 2026, the ADGM website continued to present this as proposed guidance from a closed consultation, so it should not be represented as an already enacted ADGM mining licence framework.

VASP licences in Bahrain, Jordan and Türkiye should likewise not be confused with cryptocurrency-mining licences.

Electricity Rules for Crypto Mining in the Middle East

Electricity policy is one of the most important factors affecting Bitcoin mining laws in the Middle East because proof-of-work mining can consume significant and continuous electrical power. Cheap electricity does not necessarily mean that mining is legally permitted.

Iran provides the clearest example. Its mining framework separates authorized mining from ordinary subsidized residential, agricultural and industrial electricity. Licensed miners are subject to special electricity arrangements, and authorities can impose restrictions during periods of peak consumption or grid stress. These measures regulate electricity use rather than permanently banning mining.

Kuwait has linked its mining prohibition directly to grid protection. On April 22, 2025, the Ministry of Interior warned that illegal mining could overload generators and contribute to outages.

Lebanon presents a different problem. MENAFATF’s evaluation reports enforcement against mining operations associated with unauthorized use of the public electricity network. This means miners must distinguish the legal status of mining itself from offences involving electricity theft or unauthorized grid access.

In the UAE, electricity and land-use rules can operate at emirate level. Abu Dhabi’s restrictions on mining on agricultural land illustrate why a miner cannot rely solely on federal virtual-asset regulation.

Crypto Mining Taxes in the Middle East

Tax treatment is considerably less harmonized than mining regulation, and the tax position can depend on whether a person mines for their own account, provides mining services to others, operates through a company or later sells the mined cryptocurrency.

The United Arab Emirates provides unusually clear VAT guidance. Under Federal Tax Authority clarification VATP039, proof-of-work mining for one’s own account is outside the scope of VAT because there is no identifiable taxable supply to another person. Providing computational power to mine on behalf of another person is instead treated as a taxable supply of services.

Israel also has mining-specific tax guidance. Israeli tax treatment views cryptocurrency as an asset, and mining activity can cause a person to be classified as a dealer for VAT purposes. The Israel Tax Authority continues to maintain reporting mechanisms for taxable cryptocurrency activity.

For many other Middle Eastern jurisdictions, no sufficiently authoritative mining-specific tax treatment was identified. General corporate-income, business, VAT or disposal rules may still apply even where tax legislation never uses the term “cryptocurrency mining.”

Tax treatment should therefore be assessed separately from mining legality. The fact that a country taxes a transaction involving cryptocurrency does not necessarily constitute regulatory approval of the underlying activity.

Where Are Crypto Mining Regulations Clearest in the Middle East?

Regulatory clarity does not necessarily mean that a jurisdiction is permissive.

Iran has one of the clearest positive regulatory frameworks because it distinguishes licensed mining from unauthorized mining and establishes industrial and electricity requirements.

Kuwait has equally clear rules in the opposite direction: official 2023 circulars expressly prohibit virtual-asset mining.

The UAE provides comparatively strong clarity on federal VAT treatment and increasingly detailed local discussion of commercial mining, but regulation is fragmented between federal law, emirate-level requirements and free zones.

Oman provides clear evidence that approved commercial mining projects are permissible, although the rules applying to small-scale or home miners are considerably less explicit.

For Bahrain, Iraq, Israel, Jordan, Lebanon, Qatar, Saudi Arabia, Syria, Türkiye and Yemen, legal certainty remains lower because cryptocurrency regulation primarily addresses other activities or because no comprehensive mining-specific framework has been identified.

FAQs

Is crypto mining legal in the Middle East?

Crypto mining is legal in some Middle Eastern jurisdictions but not across the region as a whole. Iran permits licensed mining, Oman hosts approved commercial mining projects, and the UAE recognizes mining under tax and local regulatory rules. Kuwait expressly prohibits virtual-asset mining. Several other countries have no clearly identifiable mining-specific framework.

Which Middle Eastern countries allow Bitcoin mining?

Iran clearly permits authorized Bitcoin and cryptocurrency mining subject to licensing and electricity requirements. Oman has approved commercial cryptocurrency-mining facilities, while the UAE recognizes mining and permits it subject to applicable business and local rules. Other jurisdictions should not automatically be described as allowing mining simply because they lack an explicit mining ban.

Is crypto mining legal in the UAE?

Yes, cryptocurrency mining is generally recognized in the UAE, but it is regulated through multiple layers rather than one nationwide mining licence. Federal tax guidance addresses proof-of-work mining, while emirate and free-zone rules can impose additional requirements. Abu Dhabi, for example, prohibits cryptocurrency mining on agricultural land.

Is Bitcoin mining legal in Saudi Arabia?

Saudi Arabia has not been shown to have a dedicated Bitcoin-mining prohibition or licensing framework in the authoritative materials reviewed through August 26, 2026. Saudi authorities have issued warnings concerning cryptocurrency investment and unregulated crypto activity, but those warnings should not automatically be interpreted as a prohibition on mining itself.

Is crypto mining legal in Iran?

Yes. Cryptocurrency mining is legal but regulated in Iran. Authorized miners require government approval and must comply with special electricity and operating requirements. Using prohibited subsidized electricity or conducting unauthorized mining can trigger enforcement, and temporary electricity curtailments may also apply when the national grid is under pressure.

Is Bitcoin mining banned in Kuwait?

Yes. Kuwait’s Ministry of Commerce and Industry and Capital Markets Authority issued rules in July 2023 imposing an absolute prohibition on virtual-asset and cryptocurrency mining activities. The Ministry of Interior reiterated in April 2025 that illegal cryptocurrency mining was prohibited and warned about its impact on the electricity grid.

Do you need a licence to mine Bitcoin in the Middle East?

It depends on the country. Iran has a specific authorization regime for lawful cryptocurrency miners. Commercial mining projects in Oman can require project, company and free-zone approvals. In the UAE, business and jurisdiction-specific approvals may apply, while ADGM proposed a dedicated commercial-mining framework in 2026. Many other countries have no identifiable mining-specific licence.

Can you mine Bitcoin at home in the Middle East?

There is no regional answer. Iran restricts the use of ordinary subsidized household electricity for mining, while Kuwait prohibits mining entirely. In Oman, Bahrain, Saudi Arabia and several other jurisdictions, authoritative rules expressly addressing normal home mining are limited or unclear. Property, electricity, fire-safety and business rules may apply even where mining itself is not specifically regulated.

Is crypto mining taxable in the Middle East?

Potentially. Tax rules differ widely. The UAE states that own-account proof-of-work mining falls outside VAT, while mining services supplied to another person can be taxable. Israel has treated miners as dealers for VAT purposes. In many other countries, miners may fall under general business or corporate-tax rules even where no dedicated mining tax exists.

Which Middle Eastern countries have the strictest crypto mining rules?

Kuwait has the clearest outright prohibition because its 2023 rules expressly ban all virtual-asset mining. Iran has stringent rules for unauthorized miners and electricity use but permits licensed mining, so it should be described as heavily regulated rather than banned. Syria also takes a restrictive position toward cryptocurrency dealings, although a separate mining-specific prohibition has not been identified.

Sources

• Kuwait Capital Markets Authority — Circular No. (10) of 2023, “Procedures Required for Transactions Associated to Virtual Assets,” published July 18, 2023. Official CMA circular
• Kuwait Ministry of Commerce and Industry — Ministerial Circular No. 1 of 2023, dated July 17, 2023. Official MOCI circular
• Kuwait Government Online / Ministry of Interior — “Kuwait warns ‘illegal’ cryptocurrency mining may drain out power grid,” April 22, 2025. Official government notice
• Oman News Agency — “Centre for Processing Data, Hosting Cryptocurrency Mining Opened in Salalah,” August 13, 2023. Oman News Agency report
• UAE Federal Tax Authority — VAT Public Clarification VATP039, “Crypto Currency Mining,” published January 14, 2025. FTA VATP039
• Abu Dhabi Global Market Registration Authority — “Discussion Paper No. 1 of 2026 – Proposed Guidance on Crypto Mining Activities,” January 2026; consultation closed March 20, 2026. ADGM consultation page
• Abu Dhabi Global Market Registration Authority — announcement on proposed crypto-mining commercial licensing, January 28, 2026. ADGM announcement
• Central Bank of Bahrain — Crypto-Asset Rulebook / regulated crypto-asset services framework. CBB Crypto-Asset Rulebook
• Jordan Securities Commission — Regulation No. 94 of 2025 on licensing Virtual Asset Service Providers, published December 16, 2025. Jordan Securities Commission notice
• Jordan Securities Commission — Draft Executive Instructions for Virtual Asset Activities for 2026, published January 15, 2026. JSC 2026 draft instructions
• Central Bank of Iraq — warning on digital currencies, November 11, 2021. Central Bank of Iraq warning
• Central Bank of Iraq — National High Committee for Regulating Virtual Assets and development of an integrated regulatory framework, December 14, 2025. Central Bank of Iraq 2025 announcement
• Capital Markets Board of Türkiye — crypto-asset service provider communiqués III-35/B.1 and III-35/B.2, effective March 13, 2025. CMB announcement
• Central Bank of the Republic of Türkiye — Regulation on the Disuse of Crypto Assets in Payments, published April 16, 2021. CBRT regulation
• Israel Tax Authority — Digital Assets information portal, updated March 2, 2026. Israel Tax Authority digital-assets portal
• Law Library of Congress — Israel cryptocurrency taxation and mining VAT treatment. Law Library of Congress analysis
• MENAFATF / FATF — Lebanon Mutual Evaluation Report, discussion of cryptocurrency mining, industrial licensing proposal and electricity-network enforcement. MENAFATF Lebanon report
• Central Bank of Syria / Syrian Arab News Agency — warning concerning digital currencies, August 19, 2025. SANA report of Central Bank statement
• Saudi Ministry of Finance / Saudi Central Bank — warning regarding virtual currencies, August 21, 2019. Saudi official statement
• Law Library of Congress — “Regulation of Cryptocurrencies in the Gulf Cooperation Council Countries – Part One,” January 2025. Law Library of Congress GCC review
• Qatar Financial Centre — QFC Digital Assets Framework 2024 announcement, September 1, 2024. QFC Digital Assets Framework
• International Monetary Fund — Republic of Yemen 2025 Article IV Consultation materials, published in 2026. IMF Yemen report
• FATF — Jurisdictions under Increased Monitoring, June 19, 2026, Yemen statement. FATF June 2026 statement

Cryptocurrency regulations, mining rules, electricity requirements, and tax treatment can change. This article is for general informational purposes only and should not be considered legal, tax, investment, or financial advice. Readers should verify current requirements with the relevant authorities or qualified professionals in their jurisdiction.