After a long period of debate and collecting feedback on the matter, the State of New York has decided to go ahead with its crypto mining ban. At the start of the year, some of the senators in New York raised the issue of an increasing number of Bitcoin mining farms in the region. A few weeks later, some senators introduced a bill that was concerned with formally banning Bitcoin mining.
New York State Bans Bitcoin Mining due to Environmental Concerns
The main concern of the senators in New York over Bitcoin mining is environmental concerns. In addition to Bitcoin, the Senate directed the bill to ban all PoW blockchains in the region. It is worth noting that Bitcoin and some other cryptocurrencies make use of the PoW consensus model to validate transactions on the digital ledger.
Investors like Kevin O’Leary recently told media that by banning PoW mining, New York could turn into a highly un-investible place. However, despite the criticism and pushback from cryptocurrency enthusiasts, the Senators in the state have decided to sign the embargo anyway.
In lieu of the PoW exodus bill, any miners would not be able to keep operating their rigs for two years. Nevertheless, the existing mining enterprises that are already working in the region would be able to keep operating and even renew their licenses.
Kevin Parker is the Senator of New York State representing the Democratic Party who recently talked to the media on the subject. He claimed that, at present, there is only one Bitcoin mining farm operating in the region, and its business prospects are not going to be affected by the introduction of the new bill. He further explained that the existing applicants could be added to a 2-year waitlist.
On the contrary, many cryptocurrency miners have set their eyes on New York on account of its hydroelectric-backed power supply. Since the start of the Senate’s crackdown on the PoW mining entities, the miners in the region have been talking about finding a new and more friendly jurisdiction for their operations.