The NY state Governor has signed a bill that places a two-year ban on new permits for cryptocurrency mining operations.
New York has become the first state to restrict bitcoin and other proof-of-work crypto mining, citing the environmental risk associated with such activities. Bloomberg reported on Wednesday that the state Governor Kathy Hochul has finally signed the bill that places a two-year moratorium on new permits for proof-of-work mining.
The moratorium particularly targets crypto-mining operations that rely on energy sourced from fossil fuels and also use proof-of-work authentication methods, per the report. “I will ensure that New York continues to be the centre of financial innovation while also taking important steps to prioritise the protection of the environment,” Governor Hochul said.
The bill already passed through the New York State Assembly and Senate, with the latter voting 36–27 in favour of the moratorium in June. The moratorium was proposed amid the increase in crypto-mining operations within the state. Additionally, the bill was partly motivated by the state’s goal of reducing gas emissions by 80% before the end of 2025.
“We must determine whether the growth of proof-of-work authentication cryptocurrency mining companies that operate their own electric generating facilities and produce energy by burning fossil fuels is incompatible with our greenhouse gas emission targets established in law,” the lawmakers stated in the bill.