New York Approves Law to Temporarily Ban Bitcoin Mining for Two Years

New York State Governor Kathy Hochul has signed a new moratorium seeking to ban the use of fossil fuels to power Bitcoin and other crypto-mining activities in the U.S. state.  

The just-approved bill was proposed in March to curb the growing interest in mining activities in upstate New York due to its sufficient hydroelectric and nuclear power availability. 

New York Bans Crypto Mining for Two Years 

According to reports, the new legislation had previously received approval from the New York State Assembly and Senate, with 36 votes from the Assemblymen and 27 votes from the Senators. 

The law has temporarily banned crypto mining companies that rely on high energy-intensive mechanisms such as Proof-of-Work (PoW) algorithms to solve high mathematical puzzles to create and verify transactions on blockchains for two years. Except they change their power sources to renewable energy. 

The approved bill also prevents existing firms from renewing their permits upon expiration while prohibiting new companies from coming on board. 

New York Becomes First U.S. State to Ban Crypto Mining

Governor Hochul, the first female Governor of the State of New York, noted that the law is the first of its kind in New York as it prepares to cut down its carbon footprints to at least 80% before 2025. 

The law has placed New York as the first state in America to restrict Bitcoin and other cryptocurrency mining activities. The White House, on the other hand, is planning to provide legislation to control Bitcoin’s energy consumption around the country.

The Governor noted that the decision to approve the law stemmed from the need to support economic development in the state. 

“I am signing this legislation into law to build on New York’s nation-leading Climate Leadership and Community Protection Act, the most aggressive climate and clean energy law in the nation, while also continuing our steadfast efforts to support economic development and job creation in upstate New York,” she said. 

Meanwhile, the approved bill has finally addressed the cries of environmental conservatives actively seeking to eradicate Bitcoin mining operations due to its effects on the climate. 

Earlier this year, a climate change activist group launched a campaign against the leading crypto asset, seeking to change its code to a less energy-intensive protocol.