An unprecedented partial ban on cryptocurrency mining in New York is having an impact on the developing sector and giving environmentalists more confidence to campaign for similar regulations throughout the country.
Environmentalists say the governor’s decision to sign a two-year embargo on new fossil fuel-powered cryptocurrency mining projects in November may serve as a precedent for other governments because it has already been reported that some cryptocurrency companies have decided not to invest in the state.
Sen. Ed Markey (D-Mass.) introduced a bill last month to require the Environmental Protection Agency to evaluate the effects of the industry and require reporting of emissions from mining operations using more than 5 megawatts of electricity. The Sierra Club and other environmental organizations are pushing for legislation to study the energy and environmental impacts of cryptocurrency mining across the nation.
Megan Wachspress, a staff attorney for the Sierra Club, stated in an interview,
We need to better understand what is happening and to enforce the environmental laws that we have against coal and gas plants that are being operated primarily for the benefit of cryptocurrency activities.
According to her,
[The New York law] is a really critical first step towards acquiring that information and towards better understanding how cryptocurrency miners are basically converting coal and gas into Bitcoin and what the implications are.
Concerned that outdated fossil fuel facilities might be restarted or boosted to run computers in order to earn cryptocurrency, a process that consumes a staggering amount of energy, environmental groups fought for the temporary suspension of various types of cryptocurrency mining in New York. Additionally, they have issued a warning that the industry itself might not be compliant with the state’s new climate law, which calls for a significant decrease in emissions.
The usage of electric grid electricity for cryptocurrency mining is not impacted by the law. Large and small sites in upstate New York can continue operations, including a former coal factory in Somerset close to Niagara Falls and a former aluminum smelter in Massena close to the Canadian border.
The partial restriction comes as companies that mine digital currencies, including Bitcoin, have started to show interest in upstate New York. The area is attractive to the sector since it includes a large number of abandoned manufacturing and power plant facilities.
Distrust in government at a difficult time for crypto
The regulation comes at a time when the digital currency market has already fallen following the bankruptcy of Bahamas-based crypto exchange FTX, leaving the industry with more uncertainty, and other owners believe it will deter businesses from relocating to New York out of fear of further restrictions.
According to Kyle Schneps, head of public policy at Foundry, cryptocurrency companies are already investing their money elsewhere. He claimed that the Bitcoin mining company located in Rochester has acquired two locations in other states and is concentrating its investments there.
The belief that New York is willing to arbitrarily ban any industry that it deems politically advantageous to attack is pervasive in the cryptocurrency sector, according to Schneps.
Any cryptocurrency company, whether proof of work or proof of stake, that is not already grandfathered in under New York’s specific crypto legislation is unlikely to develop their business in New York under the current circumstances because no one knows who might be the next target.
The only two power plants that presently use fossil fuels to power bitcoin mining equipment are exempt under the moratorium measure, which also excludes any facilities that have already applied for permits.
According to David Fogel, CEO of Coinmint, which runs the up to 160 megawatt cryptocurrency mining facility in Massena, “the legislation has no influence on our operations. We continue to invest and generate good jobs at our facility.”
One company has already felt the effects of the new law. Despite not being touched by the statewide moratorium, Blockfusion, which operates a cryptocurrency mining plant in Niagara Falls that is temporarily inactive owing to a local order, lost insurance coverage, according to CEO Alex Martini-LoManto.
Although he was in favor of the moratorium, he felt that it ought to have gone further and forbade the restart of any fossil fuel plants. When it was in operation, Blockfusion used mostly hydroelectric electricity from the grid.
The effect is relatively minor, notwithstanding the media and political circus, according to Martini-LoManto. It has no retroactive effect and has no influence on New York’s Bitcoin mining.
Industry groups for cryptocurrencies are disturbed by proposals from environmentalists to expand restrictions on the “proof of work” algorithm that powers Bitcoin and the drive to enact similar laws in other jurisdictions. In return for a fee, miners compete globally to solve difficult calculations that validate transactions. The “proof of work” methodology is used, and a mining company can charge more fees the more processing power it has. This results in a desire for electricity.
According to John Olsen, the Albany lobbyist for the Blockchain Association,
In some sense, all of the fears that the industry had about this measure and about the language around it were accurate. This isn’t about how the work will affect the environment; it’s about energy use and whether it’s true that the energy is being used for a certain operation.
The former coal plant turned gas plant and now active bitcoin mining facility is called Greenidge. In June, the state Department of Environmental Conservation rejected the company’s request to renew a crucial air permit; nonetheless, the plant is permitted to continue operating during appeals under administrative statutes of the state. Additionally, Greenidge wants to have its water permission renewed.
Additionally, the Fortistar gas plant near a residential area in North Tonawanda, Niagara County, can continue to operate. Outside, there are storage container-like pods with cryptocurrency miners and fans. The facility has a pending Title V air permit application with the state DEC. Digihost, a blockchain startup with headquarters in Toronto, purchased the site. The agency has not yet determined that the application is finished.
The law prohibits the DEC from approving any new requests to run a fossil fuel power station for bitcoin mining. Additionally, the agency faces a challenging task and a tight deadline. The law requires DEC to complete a “generic environmental impact statement” by November 22 that takes into account a number of difficulties relating to cryptocurrency mining that employs the resource-intensive “proof of work” algorithm that powers Bitcoin.
Due to the statute’s requirement that DEC hold numerous hearings across the state and allow the public 120 days to comment on a draft of this document, a tight deadline is created.
According to the statute, the DEC must conduct an analysis of the state’s “proof of work” cryptocurrency mining locations, energy consumption, energy sources, greenhouse gas emissions, and any anticipated growth and potential effects of mining expansions. Water use and effects on public health will also be studied.
The results and specifics of the finished product could prompt the state Legislature to pass more rules for the sector. A general environmental impact statement on hydraulic fracturing for natural gas, for instance, was a crucial step in New York’s 2014 restriction of the procedure, which was also a first in the country at the time.
“We anticipate DEC will recommend a policy,” and will decide whether or not this specific validation method should be taking place at all, as well as if it is in line with our climate goals, said Moran of New York’s target to reduce emissions by 85 percent from 1990 levels by 2050.
IMPT: The Environmentally Impactful Project
In the area of environmentalism, a new crypto project with is worth mentioning. A carbon credit trading platform built on the blockchain, the IMPT.io project aims to make it simpler for consumers and corporations to offset their carbon footprint. Users can obtain carbon credits by accumulating IMPT tokens, which they can then exchange for non-fungible carbon credits (NFTs). The users can then keep these carbon credit NFTs, sell them on the IMPTs market, or burn them to create new NFTs with distinctive artwork.
Make an impact on the environment and benefit from it with the https://t.co/f7szQiI4vk platform
The use of blockchain technology ensures that you purchase real carbon credits and allows you to track the impact of your actions
— IMPT.io (@IMPT_token) December 27, 2022
However, IMPT.io offers a lot more than just a carbon credit exchange. The goal of the project is to encourage customers to conduct “responsible shopping” with firms that care about the environment. The more than 10,000 firms that have agreed to the IMPT.io project will allow users to make purchases on their websites and receive IMPT tokens in exchange via an online widget.
In the meantime, IMPT.io includes a built-in mechanism to incentivise users, whether they be people or companies, to gather and burn carbon credit NFTs. Each time a user spends and earns IMPT tokens, invites new users to the platform, or purchases and retires NFT carbon credit NFTs, their IMPT.io score increases. Owners of businesses can integrate the IMPT.io platform into their storefronts to improve sales.
Investors who are leery of brand-new cryptocurrency projects should be aware that the founding team of IMPT.io has been Know Your Customer (KYC) confirmed by CoinSniper, and the project has completed a thorough security examination by Hacken. Respected companies like CoinSniper and Hacken are known for only approving trustworthy cryptocurrency initiatives.
Launch of IMPT on BitMartExchange and Gate.IO
On Wednesday, December 28, IMPT.io’s token went live on the cryptocurrency exchange BitMart, exposing it to a new cryptocurrency trader and user base. Here is where users may trade IMPT on BitMart.
— IMPT.io (@IMPT_token) December 28, 2022
On January 1st, IMPT was also listed on the Gate.io market along with a $100,000 IMPT token airdrop that is anticipated to spark a lot of buzz.
On the LBANK cryptocurrency exchange, the token’s initial exchange token offering took place a few weeks ago. On LBANK, users can trade the token.
Price Prediction: Where Will IMPT Go From Here?
Given that it just developed a pennant structure, which might lead to either a bullish or bearish breakout, IMPT appears to be at a crossroads in the near future. In the event of a bullish breakout, the cryptocurrency could immediately soar to test recent highs in the $0.02250 region, while a bearish breakout could pave the way for a very swift decline back below $0.012.
However, with encouraging news about the IMPT’s development progress anticipated shortly and the token expected to be listed on more exchanges in the coming days, which might increase demand even more, any decline back around $0.012 could be met with a sizable demand for dip purchasing.
What will IMPT.io do next?
The blockchain-based carbon credit trading platform IMPT.io is scheduled to post its first screenshots of Use Case 1 and reveal additional details ahead of the company’s intentions to be live in February, according to an update from the CEO a week and a half ago. Later this week, IMPT.io will also publish a list of the top 500 affiliate brands in addition to its most recent acquisitions. Lastly, later this week, IMPT’s token will be published on the Changelly Pro cryptocurrency exchange.
IMPT bulls believe that the release of new pictures and details about the project before its launch in February will increase excitement about it. Some even think that the cryptocurrency may soon surpass its post-ICO record high in the $0.025 range.
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