NY State Signs Two-Year Crypto Mining Moratorium into Law
The New York Governor, Kathy Hochul, signed a two-year moratorium on granting permits to bitcoin miners who use carbon-based fuel to supply electricity to power their mining operations. This moratorium applies to proof-of-work (PoW) cryptocurrency mining operations.
This regulation also imposes a limit on the electric consumption of existing mines at their current level of operation. Mines that use renewable energy alternatives will not be affected by this regulation.
“The law will prohibit Environmental Conservation Law permits from being issued for two years to proof-of-work cryptocurrency mining operations that are operated through electric generating facilities that use a carbon-based fuel,” according to the memo for the bill.
In June of this year, Senate Bill S6486D was passed by the New York State Senate following the approval of the New York State Assembly in April.
“I will ensure that New York continues to be the center of financial innovation, while also taking important steps to prioritize the protection of our environment,” Governor Hochul said.
Over the next two years, no mining operations will be allowed to expand or renew permits, and no new entrants will be allowed into the industry unless they use 100% renewable energy.
The world's largest cryptocurrency, Bitcoin, is mined using a proof-of-work system with an electronic transaction-processing system. Considering Bitcoin's carbon footprint is comparable to the country of Belarus, the bill aims to minimize its environmental impact and address it.
CBW - External Analyst