New York Senate to Restrict Bitcoin Mining

New York Senate has just passed a bill that restricts Bitcoin mining. It restricts granting bitcoin mining permits to companies based on environmental grounds.

Sponsored by Senator Kevin Parker, the bill passed the senate with a 36-27 vote margin. It is now headed to the democratic-controlled State Assembly.

Over the past few months, more and more individuals, as well as institutions, have taken to speaking against the impact of some crypto mining practices. This is especially the case with the environment. This trend has also seen Bitcoin fall in value as investors opt for more eco-friendly options.

The bill updates the state’s current Environmental Conservation Law. It prohibits issuing of mining permits to companies using carbon-based fuel. It also limits existing operations at their current energy-use levels.

To be specific, the bill applies to any crypto, such as Bitcoin, using a proof-of-work consensus model. This is because PoW relies on large amounts of computer power to validate transactions.

Senators were also concerned about miners taking old power plants and using them as mining operations. For instance, Greenidge Generations’ Bitcoin mining facility operates in a former coal-fired power plant. Still, in this case, the company responded to the environmental concerns and bought carbon offset credits.

Countries are taking different stances on the issue. For example, recently, China’s Inner Mongolia province banned crypto mining entirely even though it was one of the world’s biggest producers of Bitcoin.

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Source: https://coinquora.com/new-york-senate-to-restrict-bitcoin-mining/