Why is NYC banning crypto mining?

By Gordan Smith On Nov 3, 2022

FILE - The Greenidge Generation bitcoin mining facility, in a former coal plant by Seneca Lake in Dresden, New York, is shown in this photo from Nov. 29, 2021. A milestone measure that would tap the brakes on the spread of cryptocurrency mining operations burning fossil fuels in New York has passed the state Legislature. The bill approved early Friday, June 3, 2022, by the state Senate would establish a two-year moratorium on new and renewed air permits for fossil fuel power plants used for energy-intensive “proof-of-work” cryptomining. The plant also produces power for the state's electricity grid. (AP Photo/Ted Shaffrey, File)

Lawmakers backing the legislation say they are looking to curb the state’s carbon footprint by cracking down on mines that use electricity from power plants that burn fossil fuels.

Why is crypto banned in New York?

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The bill is an attempt by lawmakers to impede the state’s carbon footprint and “mitigate the current and future effects of climate change,” according to the bill.

Is crypto mining illegal in New York?

The New York Senate passed Bill S6486D banning cryptocurrency mining in the state when relying on carbon-based energy sources to power their operation.

Why is crypto mining being banned?

To ease the strain on power plants and reserve more electricity for households, the government imposed a four-month moratorium on Bitcoin mining.

Is cryptocurrency allowed in New York?

Yes. A business that is chartered under the New York Banking Law (for example, a New York State limited purpose trust company or a New York State bank) can engage in Virtual Currency Business Activity without a BitLicense if it has received the Superintendent’s approval to do so.