In order to protect the area’s power supply, British Columbia, the third-largest province in Canada by population, announced intentions to indefinitely prohibit new cryptocurrency mining ventures from connecting to government energy.
“These actions [will] address unprecedented electricity demand and ensure that B.C. and Canadian economic interests are reflected in the allocation of British Columbia’s growing clean-electricity supply,” the press release said.
A permanent ban into regulation
The government of British Columbia (BC) introduced a package of new laws, on Monday, Oct 20th, that would aid the state-owned electric utility company BC Hydro with its electricity availability and boost the economy.
There will be “limits on the power available for data centres and AI” and a permanent “ban on new BC Hydro connections to the electricity grid” for cryptocurrency miners as part of the regulatory reforms that will take effect in the fall of 2025.
Also Read: Norwegian Government to Investigate Crypto Mining Ban Amid Energy, Land, and Noise Concerns
“We’re seeing unprecedented demand from traditional and emerging industries. The Province’s strategy empowers BC Hydro to manage this growth responsibly, keeping our grid reliable and our energy future clean and affordable,” said Charlotte Mitha, president and CEO of BC Hydro.
It also referenced instances in other jurisdictions where taxpayer rates increased significantly as a result of unbridled power needs from developing industries.
Data centres for AI
However, compared to cryptocurrency mining, the BC government adopted a more optimistic stance toward data centres and artificial intelligence, stating in the statement that it hopes to support the development of these two new industries “in a manner that results in the greatest benefit to people in British Columbia.”
The announcement’s background material on cryptocurrency, however, explains that the industry’s “disproportionate energy consumption and limited economic benefit” are the reasons behind the prohibition on new hydro grid connections by cryptocurrency miners.
Although some governments and groups have criticised the cryptocurrency mining industry for using excessive amounts of energy, many in the industry have been battling back against the myth.
Global crypto mining regulations
The tiny Southeast nation of Bhutan has reported it has mined over $1 billion in Bitcoin using its excess hydroelectricity and plans to mine even more. Its Bitcoin holdings makes it the 4th largest government holding Bitcoin.
As we previously reported in July, the Russian government in Moscow plans to ban data centres from mining cryptocurrency if data centres are shown to be using less electricity. Officials and politicians are currently revising this proposed law, which was originally read in the State Duma in 2022.
Cryptocurrency mining requires a lot of power and energy, which is why it receives a lot of backlash from the people and community that cares about the environment.
Growing regulations around cryptocurrency mining prove that governments are actively looking into it and finding a solution for both proper regulation and technological advancement.
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