June 3, 2022

New York state imposes moratorium on bitcoin mining

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New York state imposes moratorium on bitcoin mining

The New York Senate has passed a law imposing a moratorium on new Proof-of-Work mining farms that use carbon energy to open in the state, Coindesk reports.

Existing companies will be allowed to continue operations. The moratorium will also not apply to miners using renewable energy sources.

According to the bill's initiator, Senator Kevin Parker, only one such company is currently operating and would not be affected by the law.

During the ban, the state will conduct a study on the environmental impact of PoW mining. A separate bill decided to create a task force.

Representatives of the cryptocurrency lobby are concerned that the bill could lead to detrimental economic consequences for New York. The state is considered a favourable location for cryptocurrency mining because of the availability of cheap sources of electricity, including many coal-fired power plants converted for mining.

Cryptocurrency miners have threatened to leave the region if the moratorium is passed, pointing to the relative ease of doing business in states like Texas. Community members fear the moratorium could be extended or turned into a ban.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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