New York Governor Signs Law Partially Banning Bitcoin Mining on Fossil Fuels – Mining Bitcoin News

Bitcoin.com

A moratorium on some crypto mining operations relying on carbon-based energy has been signed into law in New York. Businesses 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, which is likely to have consequences for the industry across the United States.

‘First of Its Kind’ PoW Mining Moratorium Takes Effect in New York

New York Governor Kathy Hochul signed a law on Tuesday partially banning cryptocurrency mining using power generated from fossil fuels. The legislation will prevent companies involved in proof-of-work (PoW) mining that don’t use solely renewable energy such as hydropower from expanding, and renewing or obtaining new permits in the next two years.

How To Get Free Crypto  

The bill introducing the temporary restrictions, which passed the state assembly and senate this past spring, targets specifically PoW authentication, the method employed to validate blockchain transactions for cryptocurrencies like bitcoin, as it requires significant amounts of electricity to run the powerful computing hardware.

In a legal filing quoted by the CNBC, Hochul noted that the decision “is the first of its kind in the country.” According to a report by Bloomberg, the governor has been postponing the signing of the mining law amid intensive lobbying from the sector. She also emphasized her intention to “ensure that New York continues to be the center of financial innovation” while prioritizing environmental protection.

Representatives of the industry fear that the ban could have a domino effect across the U.S., a major player in the crypto mining market. The nation’s share of the average monthly global hashrate neared 38% in January, according to the Cambridge Bitcoin Electricity Consumption Index. The Chamber of Digital Commerce issued a warning statement:

The approval will set a dangerous precedent in determining who may or may not use power in New York State.

The law would weaken New York’s economy and stifle its future as a leader in technology and global financial services, said the Chamber’s founder and chief executive Perianne Boring. In earlier comments, she also pointed out that the decision will eliminate jobs and “disenfranchise financial access to the many underbanked populations.”

Coinbase Banner  

According to other experts, the moratorium could force crypto mining companies to relocate to more favorable jurisdictions such as Georgia, North Carolina, North Dakota, and Wyoming, with jobs and tax money moving out of New York. Among them is Texas, which in addition to friendly regulations also offers access to abundant renewable power and excess energy from sources like stranded gas.

Aggressive carbon-reduction targets were also part of the reasoning behind last year’s government crackdown on crypto mining in China, the former leader in the industry. In Europe, proponents of the idea to ban PoW mining attempted to add provisions prohibiting services for cryptocurrencies that rely on the energy-intensive mining method to the EU’s Markets in Crypto Assets (MiCA) legislation. In October, amid limited energy supplies from Russia, Brussels renewed efforts to reduce power consumption in crypto extraction.

Tags in this story
ban, bill, Bitcoin, Bitcoin mining, Carbon, carbon targets, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, Electricity, Energy, environment goals, fossil fuels, Governor, Law, Miners, mining, moratorium, new york, power, restrictions, Signing, U.S., United States, US

Do you expect other states to impose similar restrictions following the enforcement of the PoW mining ban in New York? Let us know in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

FreeBitcoin Banner  

Image Credits: Shutterstock, Pixabay, Wiki Commons, Ron Adar / Shutterstock.com

Read disclaimer

Go to Source
Author: Lubomir Tassev


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.