The state of New York has placed a ban on Crypto Mining that uses fossil fuels for the next two years. The report states that Governor Kathy Hochul of New York signed a law on 22 November 2022 that partially bans crypto mining using fossil fuel power.
Crypto mining occurs when crypto transactions are verified on a proof of work protocol like that of bitcoin. With the help of sophisticated devices, which consume energy, miners verify these transactions while getting paid in the native cryptocurrency of the blockchain.
Further details show that those with an existing license will not be allowed to renew after its expiration for the next two years. On the other side, crypto miners who utilize renewable energy like hydro and solar and those who draw power from the national grid can go ahead with their business activities.
According to the enactment proceedings, which is targeted at managing the energy consumption used for the mining of cryptocurrencies and Bitcoin, the bill was passed by the state assembly in April 2022. Which was then approved in June by the senate of New York before being signed by the governor recently.
Global ban on crypto mining
Apart from New York, in the US, nations like Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar, Bolivia, and the Dominican Republic have also placed a ban on crypto mining. At the same time, Sweden wants to see the same happen in the European Union.
China is another nation that banned all activities around crypto mining in 2021 to attain its carbon emission goal. These bans have brought about the migration of miners from one nation and region to another in search of cost-efficient energy to continue their business.
Speaking about the banning of New York, Governor Kathy explained that her vision is to ensure that New York remains relevant in financial innovation without causing any damage to the environment.