New York Temporarily Bans Crypto-Mining

Could New York State’s ban on the energy-intensive activity foreshadow similar actions in other parts of the country?

1 minute read

December 2, 2022, 5:00 AM PST

By Diana Ionescu @aworkoffiction


Wall of computer servers with blue and yellow cables for cryptocurrency mining

Cryptocurrency 'mining' operations consume massive amounts of electrical power. | Mark Agnor / Cryptocurrency mining

In the wake of the nation’s first moratorium on cryptocurrency mining operations, should the industry worry that more states will follow New York’s example? Clio Chang outlines the state’s new policy in Curbed.

“Over the past few years, upstate New York has seen a proliferation of these plants that ‘mine’ digital currencies using fossil fuels, often repurposing old aluminum mills and coal plants in the area.” The New York bill, signed by Governor Kathy Hochul last week, will last for two years and applies to “new ‘proof of work’ fossil-fuel crypto plants, which utilize enormous amounts of energy to feed high-powered computers to validate new coins. It doesn’t apply to individuals — or companies — who have already filed paperwork in the state.”

Cryptocurrency mining has come under fire from environmentalists for its contributions to greenhouse gas emissions. “Global mining of just one kind of cryptocurrency, bitcoin, consumes more electricity than all residential lighting in the U.S. and produces about half the emissions of the global tobacco industry, according to the University of Cambridge.”

Monday, November 28, 2022 in Curbed

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