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Tuesday, August 9, 2022

Two-Year Moratorium By New York State Assembly On Crypto Mining Operation That Uses Non-Renewable Resources

The state legislature of New York has moved to ban cryptocurrency mining that does not follow regulations on the use of power. The industry says it is one of the many steps to try to throttle them.

The New York assembly passed this moratorium on cryptocurrency mining operations that use non-renewable sources or their mining rigs. While this move by New York state does not affect miners who plan to use renewable energy or existing ones there has been a strong sense of opposition among the crypto industry to the move.

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The move has specifically targeted Bitcoin mining as the administration remains focused on PoW mining technology that continues t power the oldest cryptocurrency majors.

The law says that local authorities in New York should not allow a new permit or approve any fresh applications. It further explained that it was still generating electricity by using a carbon-based fuel.

It also said that it wants details of the energy consumed and utilized by crypto mining operations that use PoW work.

Crypto Industry Against A Move In New York

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The local crypto market has said that such a move could both have an adverse impact on the local population and also hurt geopolitical interests and also affect jobs as people in this sector, including miners, could shift out of the regions.

Companies such as Greenidge Generation will be affected. Such companies have been taking over decrepit power plants that were once run on coal and other non-renewable carbon-based fuel and have restarted them to supply the energy required to support cryptocurrency mining.

New York state has argued that it has a vast amount of renewable energy sources and the necessary infrastructure to support them. This includes the energy rates in the Niagara region that supply hydroelectric power.

The rates are as cheap as 1.9 cents per KW against the national average of 726 cents per KW.

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