The Plattsburgh in New York has imposed a temporally ban on all commercial Bitcoin mining operations for a period of 18 months. However, local officials are optimistic that this ban could be lifted much earlier than announced.
The City Council of Plattsburgh recently announced that it had adopted a local law, which prohibits any fresh mining businesses from setting up any shop. The law will take effect immediately.
Commercial miners rules
The city announced that it intends to come up with rules specifically targeting commercial miners. The main objective behind the formulation of these laws is to protect citizens from incurring more costs in increased power costs. However, while deliberating on the laws, the city councilors noted that the ban could be lifted much earlier than expected, at least as soon as protections are put in place to protect residents. According to Councilor, Rachelle Armstrong, the ban may take much longer and was worried that it could cost a lot of money as it struggles to settle the uncertainties.
The council is working on coming up with rules that will guide the establishment of any crypto-mining facilities. The focus of these rules will be on who takes care of the increased electricity bills. Councilor, Patrick McFarlin, also concurred that the 18 month duration was very long and would hurt a lot of businesses but noted that quick and immediate action is needed so as to heal the bleeding.
Increased electricity bills
The bill was introduced after Plattsburgh went above its allocation for electricity bills at the start of this year. This led to increase in power bills for the month of January for every citizen in the city. This mess is said to have been caused by two facilities running cryptocurrency mining businesses in the city. In one of the meetings, residents complained that the hikes in power bills were becoming an unfair burden. Many of the argued that they should be compensated through tax exemptions so as to cater for this burden. Some residents have supported the introduction of new regulation arguing that without proper legislation, many companies will continue setting up shops in the city hence further escalating the power bills.