New York bans fossil fuel powered crypto-mining operations<br><br><br>

crypto mining ban in NY

New York bans fossil fuel powered crypto-mining operations

New York becomes the first state in the country to enact a temporary ban on the new crypto-mining operation powered by fossil fuels. The development took place in wake of environmental concerns as crypto mining is an energy-intensive activity.

During the ongoing spiraling down of the cryptocurrency industry, the legislation was signed by Governor Kathy Hochul, who came into power for a full term in early November.

This new legislation will impose a two-year moratorium on companies that are using fossil fuel plants in New York for digital mining activities. 

The cryptocurrency industry is impacting the state’s efforts to reduce its greenhouse gas emissions, according to the governor. In June 2022, the legislation was passed by the New York State Senate.

After China, Crypto miners were attracted to New York for their crypto mining business because of its reasonable hydroelectric energy source. Mining firms also made use of the shuttered fossil fuels power plants that are available in abundance in the United States.

The governor also claimed in her statement that environmental protection is equally significant as it is important to make New York the center of financial innovation.

According to supporters of the bill, the legislation will not stop all crypto-mining activities in the United States or affect the existing firms relying on power grids or other renewable sources for energy. However, it will only put a stop to those looking forward to re-power already abandoned fossil fuel power plants as they eventually lead to an increase the greenhouse emission.

Many crypto industries have already been the center of attention for environmentalists and media as they use plenty of energy and are becoming a hurdle in achieving the state’s climate goals.

In 2021, many upstate residents complained about how a resident bitcoin mining facility is polluting Seneca Lake and has turned it into a hot tub.

Many cryptocurrency enthusiasts have tried to persuade against the bill as they believe this development will curtail the industry’s growth.

A Democrat who sponsored the bill in the lower chamber said in a statement on Tuesday, “This bill will create the pause we need in the current trend of purchasing old power plants in New York for corporate profits and allow us to properly evaluate the impact of this industry on our climate goals before it is too late. Reactivating old retired power plants that use fossil fuels as an energy source is a move in the wrong direction and we cannot afford to go backward.”

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