New York partially bans cryptocurrency mining. Now environmentalists want more.
– Gov. Cathy Hochul’s signing in November of a two-year moratorium on new fossil fuel-powered cryptocurrency mining projects has already been said to deter some cryptocurrency businesses from investing in the state, and environmentalists are suggesting That measure could be a model for other states.
– The law does not affect cryptocurrency mining which uses power drawn from the electric grid. Operations could continue at sites large and small across New York, including a former aluminum smelter in Massena near the Canadian border and a former coal plant in Somerset near Niagara Falls.
– The moratorium bill exempts only two power plants currently burning fossil fuels to power cryptocurrency miners, which have already submitted permit applications.
– “The legislation has had no impact on our operations, and we continue to invest and create great jobs at our facility,” said David Fogel, CEO of Coinmint.
– The new law has already affected one company.
– The partial ban comes as Upstate New York has become attractive to companies that mine digital currencies, including bitcoin. The region has an abundance of manufacturing sites with former power plants and unused electrical infrastructure that is attractive to industry.
– Some bosses said the legislation is likely to deter companies from coming to New York for fear of further sanctions, and it comes as the digital currency market has also crashed following the bankruptcy of Bahamas-based crypto exchange FTX – with additional except uncertainty.
– Cryptocurrency businesses are already directing their investments elsewhere, said Kyle Schnepps, The Foundry’s director of public policy. He said the Rochester-based bitcoin mining company has acquired two sites in other states and is focusing on investments there.
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