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New York Governor signs law cracking down on certain types of Bitcoin mining

Governor Kathy Hochul's new law targets cryptocurency mining operations that run on carbon-based power sources.

November 23, 2022 8:45 AM

As regulators have worked to catch up to the wild west that has been cryptocurrency, a new law in New York may be a major detriment to crypto mining in the area as a whole. New York Governor Kathy Hochul just singed a law that cracks down hard on cryptocurrency mining that runs on carbon-based power resources, and the effects of it will not only limit such crypto operations, but last for several years.

Governor Hochul signed the new cryptocurrency regulation law into effect on November 23, 2022, as reported by Politico. The law focuses on the environmental effects of cryptocurrency mining and aims to curtail certain carbon-based operations. For the next two years, if a proof-of-work cryptocurrency operation does not use 100 percent renewable energy, it will not be approved for permits to expand, nor will it be allowed to renew existing permits. The law also limits new business under the same restrictions. As New York has become a popular place to start crypto mining operations, this stands to curtail a lot of existing and new business in said field.

A large-scale cryptocurrency mining operation. — Under New York Gov. Kathy Hochul's new law, cryptocurrency operations must prove they are using 100 percent renewable resources or risk being shut down.
Source: Image via Mark Felix/Getty Images

This isn't at all the first time New York has put the thumb on cryptocurrency. Earlier this year, controversial stock and crypto trade platform Robinhood (HOOD) was fined $30 million USD for allegations of money laundering and failures in cybersecurity on its fairly new crypto wallet feature. Cryptocurrency has been a difficult sector for authorities to properly keep up with and millions of dollars are being lost and gained in the scene frequently, either through unexpected boons, cybercrime, or outright failure, such as what happened with the collapse of crypto exchange platform FTX.

It will be interesting to see how the long-term effects of New York’s new cryptocurrency law plays out. Stay tuned as we continue to monitor the situation for further news and updates.

TJ Denzer

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.

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