Some carbon-dependent cryptocurrency mining operations moratorium-based energy was signed into law in New York. Companies engaged in proof-of-work mining in the state will not be able to expand or renew their permits for the next two years as a result of the ban. This could affect industries across the United States.
‘First-of-its-kind’ PoW mining moratorium takes effect in New York
New York Gov. signed a law partially banning the mining of The law will allow companies involved in proof-of-work (PoW) mining that does not use exclusively renewable energy, such as hydropower, to expand and renew or obtain new permits over the next two years. You will not be able to
The bill to introduce temporary restrictions passed by the state legislatures and the Senate this spring specifically targets PoW verification, which verifies blockchain transactions of cryptocurrencies such as Bitcoin. This is the method used for , and requires a lot of power to run. Powerful computing hardware.
In a legal document cited by CNBC, Hochul said the decision was “the first of its kind in the country.” The governor is delaying the signing of the Mining Act amid intense lobbying from the sector, according to a Bloomberg report. She also emphasized her intention to “ensure New York remains a center of financial innovation” while prioritizing environmental protection. We fear the ban could have a domino effect across the United States, a major player in the market. The United States’ share of average monthly global hashrate approached 38% in January, according to Cambridge’s Bitcoin Power Consumption Index. The Digital Chamber of Commerce issued a warning statement:
This approval will set a dangerous precedent in determining who can or cannot exercise power in New York State.
This law will undermine New York’s economy and stifle its future as a leader in technology and global financial services. said Mr Perianne, founder and chief executive of the Chamber of Commerce. bored. In her earlier comments, she also noted that the decision would take away jobs and “deprive many unbanked people of financial access.”
Other experts say the moratorium will force cryptocurrency mining firms to relocate to more favorable jurisdictions such as Georgia, North Carolina, North Dakota and Wyoming, reducing employment and Taxes may move out of New York. Among them is Texas, which, in addition to friendly regulations, also offers access to abundant renewable power and surplus energy from sources such as stranded gas.
Aggressive carbon reduction targets were also part of the reason behind last year’s government crackdown on cryptocurrency mining in China, the industry’s former leader. Proponents of the idea of banning mining have attempted to add provisions to the EU’s Crypto Asset Market (MiCA) law to ban cryptocurrency services that rely on energy-intensive mining methods. In October, Brussels renewed its efforts to reduce electricity consumption in cryptocurrency extraction amid restrictions on energy supplies from Russia.
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