According to the 2021/22 Assembly bill, New York has imposed some restrictions on Bitcoin mining in the state. The bill was revered recently and some individuals have raised concerns regarding the bill. Contrary to how some interpreted the bill, Bitcoin mining is still legal in New York.
The Assembly Bill (A7389C)
The bill curbs crypto mining in New York. Notably, though, the bill does not ban cryptocurrency mining. The assembly bill was passed to regulate the mining of cryptocurrencies that use the proof-of-work mechanism to validate transactions. Here are two keynotes from the bill:
• From May 2021 to May 2023, a new application or permit for licensing electric generating facilities that use carbon fuel for mining cryptocurrencies will not be approved in New York. However, existing facilities can keep running undisturbed.
• The department of environmental conservation will also restrain from renewing the licenses of existing mining facilities that use carbon fuel to generate electricity for mining cryptocurrencies if the renewal seeks to increase the amount of energy generated by the facility. This restriction will span two years, ending in May 2023.
What is Next for Bitcoin Miners in New York?
Miners of Bitcoin and other cryptocurrencies that uses the proof-of-work consensus model to validate transactions can carry on with crypto mining. However, expansion of their mining outlets will not be approved if the energy source leads to the release of carbon into the atmosphere.
Mining facilities in New York can be expanded if mining will be done with the use of renewable energy. Solar panels, windmills, and other natural sources of energy can be utilized in crypto mining in New York.
The assembly bill will likely play a part in recuperating the ecosystem. More mining facilities are turning to renewable energy to generate power for mining activities. Less than a month ago, Blockstream acquired Tesla PV megapacks to equip its mining facility in the US. Perhaps, the bill will catalyze mining facilities in New York to turn to renewable energy for mining crypto.
