- The Governor of New York imposes a 2 year ban on crypto mining firms.
- Mining permits are issued for firms using 100% renewable energy.
- As Bitcoin mining relies on the PoW system, mining will be affected heavily.
New York governor, Kathy Hochul imposed a temporary ban on the crypto mining firms for the next two years. All the mining companies that use carbon-based power sources will be banned immediately. Through this law, the state will focus on balancing both its economic growth and climate goals.
Furthermore, implementing such a strong measure into the state, New York became the first state in the U.S. to ban the Proof of Work (PoW) mining firms for 2 years. Thereby, it suspends the new permits for crypto mining companies which use fossil fuel plants.
Moreover, this law is signed to take immediate action, to save the electricity which is generated from power plants. Unseen, this extract burns the fossil fuels in the process. In addition, New York also plans to suppress its carbon footprints via breaking these mining activities which use carbon-based power sources.
2 Years Ban on Crypto Mining firms in New York
Crypto mining is the electronic way to process the digital assets transactions in the industry. In that case, Bitcoin (BTC), the top leading cryptocurrency, depends on a PoW system. Thus, mining bitcoin consumes a lot of electricity for these transactions. And mining BTC causes the release of more carbon footprints which affects the state’s growth.
However, New York’s new mining law will affect the mining activity of Bitcoin on a large scale. More so, the U.S. is leading in the top position accounting for over 35% of the world’s miners around the globe in the bitcoin mining community.
Earlier in June, the U.S. Senate imposed a two-year suspension on few crypto mining activities which use PoW. Thus, the main aim of the Senate is to pause all the PoW authentications methods to validate blockchain transactions.
Following, the law is imposed and only crypto mining firms using 100% renewable energy can continue to mine cryptocurrencies. As a result, Bitcoin mining suffers a lot because it is largely based on proof-of-work.