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The New York State Senate imposes a moratorium on bitcoin mining

The New York State Senate imposes a moratorium on bitcoin mining

A newly passed state law prohibits establishing new cryptocurrency mining businesses using non-renewable energy sources for two years.

According to Coindesk, existing companies will continue to operate. Also, the moratorium won't affect miners who use renewable energy sources.

In the words of the bill's sponsor, Senator Kevin Parker, there is only one such enterprise currently in operation which will not be affected by the law.

While the ban is in place, the government will investigate the impact of PoW mining on the environment. Under a separate bill, it was decided to create a task force.

Cryptocurrency lobby representatives are concerned that the bill could lead to devastating economic consequences for New York. The state is considered to be a beneficial place for cryptocurrency mining due to the availability of cheap electricity sources, including many coal-fired power plants repurposed for mining.

Mining cryptocurrency companies threaten to abandon the region if the moratorium is enacted, highlighting how relatively easy it is to do business in states like Texas. Community members fear the moratorium could be extended or turned into a ban.

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