New York just passed a bill cracking down on bitcoin mining — here’s everything that’s in it
The governor signed the bill into law. The new law bans any company that uses carbon-based energy sources to mine bitcoins. This includes companies that use hydroelectric dams, coal mines, and nuclear reactors. The law also requires these companies to pay a tax on every kilowatt hour of electricity used.
Following an early morning vote in New York, lawmakers passed a bill to ban some types of cryptocurrency mining operations that use carbon-based energy sources. The bill now heads to the desk Governor Kathy Hochul who could sign it into a law or veto it.
If she signs the bill, it will make New York the first State in the country to ban Blockchain Technology Infrastructure.
Industry insiders say this could have a domino affect across the United States, which is currently at the fore front of the Global Bitcoin Mining Industry, accounting for 38% Of the World’s Miners.
The new law aims to protect New Yorkers from the dangers of cryptocurrencies. Bitcoin mining uses lots of power, and there are many people who want to make money by using computers to mine bitcoins. This is why the state government wants to ban these activities until further notice.
The push for an eleventh hour vote came as leadership in state capital managed to flip some of senators who were previously undecided, lawmakers backing the legislation say they’re looking to crack down on mines that use power plants that burn fossil fuel. If it passes, for two years, unless proof-of-work miners use 100% renewable energy, they would not be allowed to grow or renew permits, and newcomers would not be allowed to enter.
This is a significant setback for New York’s economy. Businesses will move out of the city because of the new law. Jobs will be lost due to the loss of unions. Financial access will be reduced for those who need it most.
New York is setting a bad example for other states. The law goes into effect as soon as Governor Cuomo signs it.