New York Is First State To Limit Crypto Mining

New York governor Kathy Hochul signed legislation limiting Cryptocurrency in November of 2022, making New York the first state in the country to do so. The move followed the chaos that resulted as a result of the FTX Exchange crash, although the legislature was passed back in June 2022, with environmental reasons being its top concern. Gov. Hochul made the decision to sign the bill rather than veto it, and her actions could start a domino effect across America.

Under the new law, cryptocurrency mining is banned across New York, unless the energy powering it is 100% renewable. The law is set to last for two years and hopes to negate some of the environmental impacts of crypto mining.

The bill is attempting to cut down on New York State’s carbon footprint, which is made worse by the burning of fossil fuels to power crypto mining. As is the case with any new laws, some are not happy about the change.

Obviously, all the individuals who are already mining crypto and have the setups to do so in the state are now in a position where they will have to either find a way to access only renewable energy, stop mining altogether, or leave the state. Because of this, it’s likely that the bill will be met with backlash from crypto miners and enthusiasts alike.

What Is The Environmental Impact Of Crypto Mining?

The fact that mining cryptocurrency comes with a toll on the environment is no secret, but many don’t understand just how serious the environmental impact is. Crypto mining requires huge amounts of energy to power, and more often than not that power is obtained through the burning of nonrenewable fossil fuels like coal.

Miners will generally seek out the lowest cost options when powering their mining activities and choose regions with low energy costs. Unfortunately, this often leads to the burning of fossil fuels, which can be detrimental to the environment. Crypto mining consumes?nearly 0.45% of the world’s electrical energy, and while that number might sound small, it’s actually pretty significant.

Some countries have altogether banned cryptocurrency mining thanks to its negative impact on the environment, with Beijing making all cryptocurrency transactions illegal. Kosovo banned mining at the start of 2022, followed by an energy crisis in the Balkan country. With more and more people taking notice of just how bad crypto mining can be on the environment, it’s expected that more states and countries will follow New York’s example.

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Author - Staff Writer

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