The bill refers to the environmental impact of cryptocurrency mining on the climate and the unsustainable infrastructure used for these operations.
New York is the first US state to ban certain types of cryptocurrency mining. New York State Governor Kathy Hochul signed into law a bill on Tuesday that provides for a moratorium on those using fossil fuels to mine cryptocurrencies. No new permits for such mining operations will be issued for two years, and existing permits will not be renewed.
As digital guide Ionos explains, cryptocurrency mining is “a decentralized computing process to process, secure, verify, and synchronize all cryptocurrency-related transactions.”
This New York State initiative fits into a general situation of uncertainty that has arisen in the cryptocurrency sector, also aggravated by the collapse of the FTX cryptocurrency exchange platform, founded by Sam Bankman-Fried, who filed for bankruptcy last 11 November.
After some restrictions of this kind imposed in China, New York has become one of the major centers for cryptocurrency mining thanks to low energy costs, also generating a series of protests from activists fighting against climate change. The bill just signed by Hochul had already been approved by the Senate last June.
The bill refers to the environmental impact of cryptocurrency mining on the climate and the unsustainable infrastructure used for these operations. In addition to the moratorium, the new law requires the New York Department of Environmental Conservation to produce a statement assessing the extent of the environmental impact produced by cryptocurrency mining across the state over the course of a year. This data will be used to make political decisions in the future.
“I will make sure that New York continues to be the center of financial innovation, while also taking steps to protect the environment. This is a first in the United States and an important step for New York to address the climate change crisis” Hochul said.