Flash Decision from New York State: Banned!

New York, new cryptocurrency mining It was the first state to temporarily ban it. Ban, two-year ban fossil fuel-powered bitcoin includes miners.

Governor of New York Kathy Hochulsigned one of the most restrictive laws in the US regulating crypto mining.

New York Governor Hochul Signs Law Temporarily Banning Cryptocurrency Mining

The bill introduces a two-year ban on new permits for crypto mining companies that run on fossil fuels and use proof-of-work authentication methods with millions of computers to verify transaction data.

The Bitcoin (BTC) network relies on proof-of-work authentication. Billions of dollars have been invested in Bitcoin mining operations. The energy consumption for such operations may equal the energy consumption of a country.

New York has become one of the largest crypto mining centers after China banned crypto mining last May.

Miners flocked to the state because its lower energy costs and cool climate resulted in higher efficiency for mining operations.

The bill’s approval came as the crypto industry faced further scrutiny from regulators following the bankruptcy of cryptocurrency exchange FTX.

The sudden drop of FTX has brought shock waves and spreading fears in the crypto market as Bitcoin temporarily dropped below $16,000.

The bill was approved by the State Senate in June, but Hochul has so far not signed it due to fierce lobbying from the cryptocurrency industry against the proposal.

Asked about the crypto moratorium at a governor’s debate in late October, Hochul said he was “looking closely at this bill”, but did not explicitly say he would sign it.

*Not investment advice.