New York state passes bill against non-renewable based crypto mining
The New York state legislature has passed a two-year ban on cryptocurrency mining that many in the industry see as a first step towards throttling the sector.
The New York State Assembly has passed a two-year moratorium on cryptocurrency mining operations using non-renewable resources to power their mining rigs. While the bill does not affect existing miners nor miners that plan to use renewable energy, there was strong opposition among the local crypto industry.
The bill seems to be targetting Bitcoin-specific mining, as it is focused on limiting the proof-of-work mining technology that powers the world's oldest cryptocurrency.
It says that the local authorities are not to "approve a new application for or issue a new permit...for an electric generating facility that uses a carbon-based fuel and that provides, in whole or in part, behind-the-meter electric energy consumed or utilised by cryptocurrency mining operations that use proof-of-work authentication methods to validate blockchain transactions."
The local crypto industry warned that this move could impact both jobs and geopolitical interests as miners and others in the sector could relocate out of New York or even America.
This bill affects the companies, like Greenidge Generation, that have been taking over abandoned power plants run by non-renewable resources like coal, and restarting them to be able to provide the necessary energy to support crypto mining.
The state's argument is that New York has abundant renewable energy available for the same purpose, with some of the lowest rates in the country found near the hydroelectric dams on the Niagara River. These regions have industrial energy at as cheap as 1.9 cents per kilowatt, compared to the national average of 7.26 cents per kilowatt.
Edited by Saheli Sen Gupta
