Plattsburgh’s Bitcoin Mining Moratorium Stays, More Restrictions Coming

Plattsburgh’s Bitcoin Mining Moratorium Stays, More Restrictions Coming

The moratorium which was placed on bitcoin mining firms in Plattsburgh, New York earlier in the year will remain.

This emerged after officials of the Plattsburgh City Council adopted regulations for cryptocurrency mining activities without announcing an end to the moratorium which was placed in March this year, according to the public radio network, WAMC. However, the mayor of Plattsburgh, Colin Read, has revealed that the councilors will consider whether the moratorium can be lifted in a month’s time.

Among the cryptocurrency mining regulations that were passed by Plattsburgh City Council include a requirement for all new cryptocurrency miners in the urban area to apply for a Special Use Permit. Additionally, existing cryptocurrency mining operations must also acquire the same permit if they intend to expand.

Noise Pollution Levels

These new regulations will consequently see the noise pollution levels of cryptocurrency mining operations restricted to 90 decibels when measured 25 feet from the facility. The regulations will become effective once they are filed with the office of the Secretary of State of New York.

Prior to passing the regulations, the most common complaint that the residents of Plattsburgh aired during the public hearings was noise pollution with some of the residents comparing it to living near an air force base.

As reported by CCN earlier in the year, part of the reason why Plattsburgh has been attractive for cryptocurrency mining firm is that it offers some of the lowest energy costs in the U.S. due to the cheap hydroelectric power generated from the damming of the St. Lawrence River.

Officials from Upstate New York Town Seek to Ban bitcoin Mining https://t.co/xIIrnSCP5E

— BitcoinInter (@BitcoinInter) March 12, 2018

But the entry of cryptocurrency mining operations has resulted in the city being required to buy power at higher rates due to the increased consumption from the miners.

“With great use of additional power, we are put over our threshold each winter and we are put over our threshold of ratepayers,” Read said earlier in the year at around the time the moratorium was being imposed.

Opportunity Cost

But while the regulations will offer a reprieve to the residents, cryptocurrency miners in the city are crying foul and are warning that the urban area will lag behind with regards to the emerging blockchain sector. Some of the miners have pointed out that their businesses will no longer be viable if the current conditions persist. The CEO of cryptocurrency mining outfit Zafra LLC, Ryan Brienza, has, for instance, threatened to move elsewhere especially if the moratorium is not lifted.

“I thought at least with the passing of this the moratorium would be lifted which will let us expand because we’re the local guys in town and it’s really hurt our business,” said Brienza. “If this doesn’t get resolved quickly then we’re moving out of town.”

Featured image from Shutterstock.

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Published at Tue, 30 Oct 2018 09:34:23 +0000