New York ceases Bitcoin mining for 2 years

In bad news for blockchain and bitcoin lovers, the New York State on Friday passed a bill to cease new permits for specific fossil fuel power plants to be utilized in Bitcoin mining. The move sets up a two-year ban on new permits for crypto mining operations that use proof-of-work (PoW) authentication methods to validate blockchain transactions. The stance also begins a study on the environmental impact mining facilities are having in New York.

The Senate voted 36-27 in favor of the new bill. The bill has now been sent to the desk of Governor Kathy Hochul, who can veto it or sign it into law. She reportedly received a $40000 donation the previous month from a chief executive of a firm that operates a former aluminum plant turned crypto-mining facility.

The bill was passed by the NY State Assembly the previous month. It would impose a ban on any new PoW mining projects powered by carbon-based fuel in the state. However, the existing cryptocurrency mining operations undergoing the permit renewal process would be allowed to resume. However, as per CoinDesk, mining firms based in New York have warned to leave the state if the ban is passed.

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