The regulation, which was approved by the New York Legislature last June, includes a two-year moratorium that prohibits the granting of new permits for firms that carry out these operations.
Mining consists of the validation process – through complex mathematical calculations – required by operations carried out with cryptocurrencies.
They tend to be extremely intensive in electricity consumption, requiring multiple processors, computers and cooling equipment to be able to carry them out at scale.
Mining has become a source of investment, since each of the operations grants a small percentage to whoever places the infrastructure to validate them.
New York had become one of the mining centers after China – until then, the leader in the activity – banned the activity in its entire territory last May.
The State was attractive due to its low energy costs and its temperate climate, which made it possible to increase the productivity of the “miners”.
However, the activity received strong questions from environmental movements due to the high consumption of electricity, often from fossil fuels.
“I will ensure that New York continues to be the center of financial innovation, while taking important steps to prioritize environmental protection,” Hochul said in an internal message.
Hochul, the Democratic governor, took office in August last year after the resignation of Andrew Cuomo, accused of multiple instances of sexual assault.
“This is the first (measure) of its kind in the country and a key step for New York as we work to solve the global climate crisis,” the official added.
The temporary ban on mining in the New York State represents another blow to the cryptocurrency industry, whose values and confidence have plummeted in recent weeks after the collapse and subsequent bankruptcy of FTX, one of the main exchange platforms along with Binance.
Source: Ambito
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