New York officials bitcoin There has been a new development regarding the draft law that aims to impose a temporary ban on mining activities.
The Roads and Means Committee of the New York Assembly evaluated the bill today and unanimously decided that the bill would be voted on by the House.
Bill Will Not Ban Bitcoin Mining As Claimed
If the bill is passed in New York state cryptocurrency and there is a misconception that Bitcoin mining will be banned.
It is known that the scope of the bill in question is limited. If the bill passes the parliament, it will not allow new work permits to cryptocurrency mining operations based on the Proof of Work mechanism for two years.
New businesses that will not be granted work permits will only be plants that generate electricity using carbon-based fuels.
The bill also requires the New York State Department of Environmental Protection to conduct a study on how Proof of Work mining affects the state’s achievement of climate goals. The state aims to reduce its greenhouse gas emissions by 85% by 2050.
Currently Ongoing Mining Activities and Companies That Will Use Renewable Energy In The Future Are Not Prohibited
If the bill passes, the mining activities of companies such as Greenidge Generation could be disrupted in the region.
This company once converted a coal-fired power plant to run on natural gas and used this facility to mine Bitcoin.
Although Greenidge Generation’s current operations will not be affected by such a ban, if the bill passes, the company will not be able to expand its existing operations.
The bill will not affect those who currently carry out mining operations based on the Proof of Work mechanism. In addition, Bitcoin miners who want to use the state’s renewable energy sources in the future will not be covered by the law.
*Not investment advice.