New York Passes Bitcoin Mining Restriction Bill

A bill to temporarily restrict Bitcoin mining activities has just been passed in New York, USA.

Follow EngadgetNew York lawmakers passed a new bill to temporarily ban mining operations Bitcoin. On Friday, June 3, state senators voted 36-27 to pass the bill. The bill is currently awaiting a verdict from Governor Kathy Hochul, who will either sign it into law or veto it. The law will take effect immediately after it is signed.

New York Passes Bill to Limit Bitcoin Mining.

Last year, there was an attempt to enact a similar law but hit roadblocks. At that time, the New York State Senate passed it but members of Congress did not. The latest bill was passed by the National Assembly in April.

The new bill is seeking to establish a two-year ban on licenses for cryptocurrency mining activities, as these activities consume electricity in validating blockchain transactions. Currently, Bitcoin and Ethereum (the two most popular cryptocurrencies) are in the category of “power-hungry”.

The ban covers only mining activities using carbon-based energy sources. Any device that mines with fully renewable energy sources or an alternative that requires less energy will not be affected. Existing activities and those that have undergone license renewal will also be unaffected.

While the ban is in place, New York will conduct a study on the environmental impacts of cryptocurrency mining methods, according to the bill. As CNBC notes, New York has ambitious climate goals, requiring the state’s greenhouse gas emissions to be reduced by 85% by 2050.

New York has become a hotbed for cryptocurrency mining in part due to abundant hydroelectricity, low electricity prices, and a cooler climate than other parts of the US (it takes less power to cool the hardware). mining hard).

Several miners have threatened to leave New York due to regulatory uncertainty and set up crypto mining operations in more crypto-friendly states. Meanwhile, the Biden administration is working on a policy regarding Bitcoin mining. The White House is looking at the technology’s impact on greenhouse gas emissions.