Key Highlights:
- New York Governor Kathy Hochul, on Tuesday, signed legislation outlawing specific crypto mining firms that utilize energy sources based on carbon.
- A proof-of-work (PoW) mining company will not be permitted to expand, renew permits, or allow new competitors to begin operations for the next two years unless it employs only renewable energy.
As the first state to enact such a prohibition, New York Governor Kathy Hochul has signed one of the country’s strictest regulations governing crypto mining.
What is the ban about?
The passed law targets businesses that mine Bitcoin and other cryptos in upstate New York using inexpensive energy. The state intends to reduce its carbon emissions by 80% to enhance the quality of life.
A Proof-of-Work (PoW) mining operation won’t be able to renew its permits for the following two years unless it switches to renewable energy sources. In addition, newcomers are not allowed at all to join the team.
The proposal that the governor of New York has approved is reportedly on track to become law after receiving support from both the Assembly and Senate of that state.
The domino effect
The governor’s signing of the crypto mining embargo into law could have many repercussions.
Advocates for the industry said that each of these facilities has a large economic impact on the surrounding community, employing numerous electricians, engineers, and construction workers and perhaps discouraging investment in more environmentally friendly energy sources. According to analysts, a migration of crypto miners could result in the loss of local employment and tax revenue.
