New York halts Bitcoin mining for 2 years

In bad news for Bitcoin and Blockchain lovers, the New York State on Friday passed a bill to halt new permits for certain fossil fuel power plants to be used in Bitcoin mining. The measure establishes a two-year moratorium on new permits for cryptocurrency mining operations that use proof-of-work (PoW) authentication methods to validate Blockchain transactions. The measure also initiates a study on the environmental impact mining facilities are having in New York state. The Senate voted 36-27 in favour of the new bill.

It now goes to the desk of Governor Kathy Hochul, who could sign it into law or veto it, reports The Verge.

Hochul reportedly received a $40,000 donation last month from a chief executive of a company that runs a former aluminium plant turned crypto-mining facility. The bill was passed by the NY state Assembly last month.

It would impose a moratorium on any new PoW mining projects powered by carbon-based fuel in the state.

However, existing crypto mining operations undergoing the permit renewal process would be allowed to continue. According to Coindesk, mining companies based in New York have threatened to leave the state if the moratorium is passed. (IANS)

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