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New York Becomes First State to Partially Ban Crypto Mining

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Kathy Hochul was the first governor to be appointed following the resignation of Andrew Cuomo, but was recently re-elected for his first full term as governor.

In a historic regulatory move, New York became the first US state to ban certain types of cryptocurrency mining. Gov. Kathy Hochul said on Tuesday that the energy-intensive “proof-of-Crypto mining using fossil fuels. For a period of two years, no new permits will be issued for such mining operations and existing permits will not be renewed. to the law (A7389C).

The bill heavy climate and infrastructure costs of Crypto mining in its inference. In addition to the moratorium, the new law mandates that New York’s Environmental Protection Agency prepare an environmental impact statement evaluating evidence of the work’s statewide impact within his one-year period, after which future policy can be used to notify

evidence-of-Work mining uses a large network of computers to generate encrypted blocks on the blockchain. Essentially, computers compete to solve long strings of useless arbitrary and increasingly complex mathematical equations that validate their intent, tabulating and tracking transaction data across networks. . The end result of all of this is that the winning miner finally gets a piece of the new crypto coin, making mining profitable.

evidence-of-This work aims to keep the blockchain decentralized and fraud-free. The entry fee is incredibly high and the cost is paid through energy.Outside the US, European regulators also Restriction under consideration and ban practice.crypto mining is huge drainage on the power gridthe industry as a whole massive carbon footprint.

“I am signing this act to build on New York’s nation’s leading Climate Leadership and Community Protection Act, the nation’s most aggressive climate and clean energy law, while supporting economic development and job creation. Upstate New York,” Hochul wrote in a note shared on Gizmodo, explaining why the governor approved the law. “I recognize the importance of creating economic opportunities for marginalized communities. This is why I continue to invest in economic development projects that will create jobs for the future… We will also take important steps to prioritize protection,” she added.

Notable: Moratorium Continues to Allow Crypto Operators Heavily Dependent on Less Energy Intensive “Proof of Stake” model. It also allows miners to continue running and building proof-of-work setups that rely on non-fossil fuel sources such as hydro, nuclear and wind. But it still robs the grid of valuable green energy that could go to more needed uses.

The newly signed bill was approved by the state Senate in June, but Hochul said remain uncommitted Until this week. cryptocurrency lobbyist (When new york cityEric Adams) for Governor vetoing bill, has expressed concern that the regulation will curb business benefits to the state and impede industry growth. Cryptocurrency advocates fear that the New York bill will eventually lead to similar bills being passed elsewhere. Report from CNBC We quote the voice of the industry extensively.But crypto has already done pretty good job of become suffocating that’s all past Several months.

Recently, collapse FTX, one of the largest crypto exchanges, has sent shockwaves through the blockchain. Tanking bitcoin value lead to other interactions to be downgradedFTX’s implosion was largely due to founder and CEO Sam Bankman-Fried’s poor judgment and Possibly illegal management of investor funds. And whether or not the court ultimately holds him responsible for all the money lost to SBF, there is no denying that cryptocurrency is cryptocurrency. full of scams.

Also worth considering. The cryptocurrency industry provides value to a very small number of people. Not exactly in the public interest. As Texas has demonstrated, cryptocurrency mining is a major drain on the energy grid. All Houston households.

New York has seen a rise in cryptocurrency mining operations in recent years, and in some cases, the industry has had a negative impact on the community. Aside from the climatic downsides. In Plattsburgh, an influx of miners led to skyrocketing winter energy bills and massive noise, with no local economic benefit. report From MIT Technology Review. “From 2016 to 2018, cryptocurrency mining in upstate New York increased annual electricity bills for small businesses by about $165 million, and for individuals he increased by $79 million,” the article states. increase.

Plattsburgh residents are therefore likely to be encouraged by the new regulations along with environmental groups. “This first-of-its-kind law should set the standard for all other states where crypto miners are infiltrating, extracting resources and wreaking havoc,” said nonprofit Earthjustice. . statement“We are very much looking forward to DEC’s fact-finding and are confident that it will affirm…[that] Cryptocurrency mining is a major threat to climate security and should be strictly regulated. ”

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