Gov. Kathy Hochul has signed laws enacting a two-year moratorium on cryptocurrency mining in New York.
The brand new regulation handed the laws in June, and the governor’s motion follows the collapse of the FTX cryptocurrency alternate. Nevertheless, this new regulation – which is the primary handed by a state – is concentrated solely on the environmental issues created by cryptocurrency mining.
Based on an Associated Press report, the regulation suspends new and renewed air permits on the fossil gas energy crops used within the “proof-of-work” blockchain algorithms used within the cryptocurrency mining course of. Many environmentalists have expressed concern that the heavy fossil gas utilization in cryptocurrency mining contributes to the local weather disaster.
The brand new regulation additionally duties the Division of Environmental Conservation to find out cryptocurrency mining’s influence on the state’s potential to fulfill its local weather targets.
“I’ll be sure that New York continues to be the middle of economic innovation, whereas additionally taking necessary steps to prioritize the safety of our surroundings,” mentioned Hochul.