New York prohibits brand-new crypto mining power plants—in the meantime

New York is taking a first-in-the-nation action to tap the brakes on the spread of cryptocurrency mining, under legislation that Gov. Kathy Hochul signed Tuesday.

The procedure comes in the middle of growing examination of the cryptocurrency market following this month’s collapse of the FTX exchange. But New York’s procedure, which passed the state Legislature in June, is particularly interested in the ecological elements of crypto.

“I will ensure that New York continues to be the center of financial innovation, while also taking important steps to prioritize the protection of our environment,” Hochul, a Democrat, stated in a message discussing her approval.

The brand-new law sets a two-year moratorium on brand-new and restored air authorizations for nonrenewable fuel source power plants utilized for energy-intensive “proof-of-work” cryptocurrency mining — a term for the computational procedure that records and protects deals in bitcoin and comparable kinds of digital cash. Proof-of-work is the blockchain-based algorithm utilized by bitcoin and some other cryptocurrencies.

The law likewise needs the Department of Environmental Conservation to asses how cryptomining impacts the state’s capability to fulfill its environment objectives.

Environmentalists stated New York was weakening those objectives by letting cryptomining operations run their own natural gas-burning power plants.

Cryptocurrency supporters, on the other hand, argued that the procedure would crimp New York’s financial advancement, and singled out crypto while not attending to other nonrenewable fuel source usage.

Cryptocurrency mining needs specialized computer systems that take in big quantities of energy. One research study computed that since November 2018, bitcoin’s yearly electrical energy intake was equivalent to Hong Kong’s in 2019, according to the U.S. Energy Information Administration.

Some miners are trying to find methods to lower their dependence on nonrenewable fuel sources to produce the needed electrical energy.

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News and digital media editor, writer, and communications specialist. Passionate about social justice, equity, and wellness. Covering the news, viewing it differently.

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