State of New York Approves Moratorium on Crypto Mining

 

The state legislature of New York has approved legislation that establishes a moratorium on cryptocurrency mining operations that use proof-of-work to validate blockchain transactions. The aim is to mitigate the utilization of of electricity that can drive carbon emissions.

According to the language of the bill;

The continued and expanded operation of cryptocurrency mining operations running proof-of-work authentication methods to validate blockchain transactions will greatly increase the amount of energy usage in the state of New York, and impact compliance with the Climate Leadership and Community Protection Act.

And;

The legislation provides for a two-year moratorium there will be no approvals of new applications or issuance of a new permit for an electric generating facility that utilizes a carbon-based fuel and that provides “behind-the-meter electric energy consumed or utilized by cryptocurrency mining operations that use proof-of-work authentication methods to validate blockchain transactions.”

Proof of work cryptocurrency like Bitcoin has received criticism due to the amount of energy required to generate new Bitcoins while competing with other machines attempting to do the same.

The Cambridge Centre for Alternative Finance (CCAF) has launched a Bitcoin Mining Map that tracks the creation of BTC and the energy consumed in the process. At one point, China was the country where most Bitcoin was mined but following government actions that made crypto illegal, the US emerged as the largest Bitcoin mining country.

Legislation is also in the works that would create a blockchain study task force entitled the New York state cryptocurrency and blockchain study act.

 



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