New York imposes a two-year partial ban on cryptocurrency mining by DailyCoin

New York places a two-year partial ban on cryptocurrency mining
  • New York will not renew licenses for power plants that power mining rigs
  • Miners who use renewable energy sources or draw power from the grid will not be affected

Governor Kathy Hochul signed a Proof of Work (PoW) mining moratorium into law on Tuesday, November 22, making New York the first state to restrict PoW mining.

Aimed at reducing carbon emissions, the legislative measure aims to focus on the energy-intensive process used to mine and other cryptocurrencies.

The recently signed law will place a two-year ban on air permits for fossil-fueled power plants used to mine cryptocurrency. The state will no longer issue new permits, nor will it renew existing permits for non-renewable power plants that power mining rigs.

The mining moratorium bill was approved by the announced assembly in April. The bill was approved by the Senate in June before being sent to the governor’s office for ratification.

She added, “I will ensure New York continues to be a hub for financial innovation, while also taking important steps to prioritize protecting our environment.” The law will affect miners who use fossil fuel power plants to mine cryptocurrency.

Mining operations in the case that draw power from the network will not be affected by this measure. Moreover, miners will still be allowed to use renewable energy plants to mine cryptocurrency.

Global organizational repression?

The New York regulatory move echoes similar regulatory initiatives in other parts of the world. Dozens of countries, including Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar, Bolivia, the Dominican Republic, North Macedonia and Tunisia, have already banned mining. Sweden is currently pushing for a mining ban in the European Union.

In July 2021, China imposed a complete ban on all cryptocurrency mining. Authorities cited efforts to reach carbon emissions targets as the reason for the ban. Despite the ban, clandestine mining operations are still going on in the country.

Crypto mining is the process of verifying crypto transactions on a proof-of-work blockchain network. Miners verify these transactions and get digital coins as payment. The process requires massive amounts of computing power and electricity to complete.

Most cryptocurrency miners mine bitcoin, which is the largest digital currency by market cap. , the second largest token, recently transitioned to Proof of Stake, which is a less energy-intensive alternative.

on the flip side

  • Mining operations are more profitable in other states, and the United States is unlikely to ban mining at the federal level.

Why should you bother

The ban will affect bitcoin mining operators in New York who were lured there after the Chinese crypto crackdown in 2021.

Read about the dangers of the global crackdown on mining:

Possible global crackdown on Bitcoin (BTC) mining due to high energy consumption

Read about more regulatory initiatives targeting US mining:

US lawmakers are looking to limit the power use of crypto mining companies

See the original on the Daily Queen

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