New York State to Restrict Fossil Fuel-Based Cryptocurrency Mining for 2 Years

Environmental Groups Criticize "Huge Electricity Consumption During Mining"
Cryptocurrency Groups "Disappointed in New York State... Will Move to Other States"

[Asia Economy Culture Young Intern Reporter] New York State is the first in the United States to restrict cryptocurrency mining for environmental protection reasons. Cryptocurrency mining has long been criticized by environmental groups due to its enormous electricity consumption.

On the 22nd (local time), according to the Wall Street Journal (WSJ), New York Governor Kathy Hochul signed a bill restricting cryptocurrency mining for two years. The bill takes effect immediately and allows mining using eco-friendly energy such as hydropower, but bans cryptocurrency mining powered by fossil fuel generation.

Cryptocurrency miners earn virtual currency by solving mathematical equations with computers, a process that consumes a tremendous amount of electricity. Governor Hochul said, "As New York becomes a center of financial innovation, it will also take important measures to prioritize environmental protection." With this, New York becomes the first state in the U.S. to restrict cryptocurrency mining.

To prevent the passage of this bill, cryptocurrency industry groups have consistently opposed it. Heather Bricetti Mulligan, Chair of the New York State Business Council, said, "The New York State government should not restrict the growth of any industry or sector." The Digital Chamber of Commerce, representing Binance, the world's largest cryptocurrency exchange, and several digital asset mining companies, stated, "We are disappointed by this decision of the New York State government" and "plan to move operations to other states."

Environmental groups argue that cryptocurrency mining excessively consumes energy and pollutes the environment. Liz Moran of the environmental group Earthjustice said, "The newly enacted New York State law will set the standard for cryptocurrency mining," adding, "Cryptocurrency mining is a major threat to climate security and must be closely regulated."

The cryptocurrency market has grown rapidly in recent years, but U.S. federal authorities have been hesitant to regulate cryptocurrencies. Meanwhile, more than 160 cryptocurrency-related regulatory bills are being reviewed in 37 states across the U.S.

This content was produced with the assistance of AI translation services.