Cryptocurrency Mining Restricted In New York
The law restricting the mining of cryptocurrencies using electricity from non-environmental sources in the US state of New York was signed by the Governor of the State, Kathy Hokul. For the first time in the country, fossil fuel miners will not be able to obtain a license to mine cryptocurrency.
The document introduces a moratorium on the issuance and renewal of permits for the production of cryptocurrencies if the mining equipment is powered by a fossil fuel power plant, and the corresponding blockchain is based on the Proof-of-Work algorithm. This algorithm underlies, for example, the bitcoin network – it provides transaction protection, but is extremely energy intensive. Abandoning this model, the Ethereum blockchain reduced energy consumption by more than 99%. New York state legislators passed this law back in June, and the governor opposed it.
Cryptocurrency mining companies have threatened to leave the region if the moratorium is passed. Community members fear the moratorium could be extended or turned into a ban.
