New York Governor Kathy Hochul signed a law partially restricting cryptocurrency mining.
New York has become an attractive destination for crypto mining businesses due to its cheap hydroelectric power sources. Miners also took advantage of the abundance of closed fossil fuel power plants in the state. After a while, the miners drew backlash from environmental groups. Although the law that comes into force does not completely prohibit mining activities, it will partially negatively affect it.
New York Made It Harder For Crypto Miners
New York Governor Kathy Hochul signed the controversial environmental ban on Tuesday. This law appears to be an obstacle to crypto mining.
Hochul said in a statement that he wants New York to remain the center of financial innovation, but the governor also stressed the importance of protecting the environment. The bill, which would create the nation’s first temporary pause in new permits for fossil-fuel power plants hosting proof-of-work cryptocurrency mining, a process used in the country, was passed by the New York State Senate in early June.
The new law will also trigger a study by the state Department of Environmental Protection to examine the effects of the cryptocurrency mining industry on the environment.
New York has become the first state in the country to impose a two-year moratorium on fossil fuel-powered proof-of-work cryptocurrency mining activities. Moratorium is the declaration of the debtor that he cannot pay all or part of his debts due to his inability to pay.
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