British Columbia Enforces Permanent Ban on New Crypto Mining Connections

British Columbia, the Canadian province has officially imposed a permanent ban on its new cryptocurrency mining connections to the hydroelectric grip. The government explains that the increased electricity usage as the reason behind the ban. The cited that the province wants to prioritize emerging industries such as artificial intelligence (AI) and data centers.

In an announcement on Monday, officials outlined new legislation aimed at ensuring sustainable energy allocation while supporting the province’s economic development goals. The move follows concerns raised by BC Hydro, the province’s main power utility serving over 95% of residents, about the unprecedented growth in energy consumption across various sectors.

Charlotte Mitha, the president and CEO of BC Hydro, said that the policy is meant to assist control demand "responsibly" while keeping "a clean and affordable energy future."  The new rules, which will go into effect in the fall of 2025, will limit how AI facilities and data centers may use electricity. They will also completely stop crypto miners from connecting to the grid.

While the government acknowledged the potential of AI and data centers to create economic value, it justified the crypto-specific ban on the grounds of “disproportionate energy consumption and limited economic benefit.” The province said its goal is to ensure electricity supports projects that yield greater returns for residents and the broader economy.

But some in the crypto industry say that the decision ignores the sector's possible contributions. People like Bitcoin environmentalist Daniel Batten have long disagreed with the idea that mining is necessarily wasteful. Instead, they say that it can help with energy innovation and carbon reduction efforts.

British Columbia's crackdown is the end of a policy trend that started in December 2022, when the province put a stop to new mining grid connections for 18 months to give regulators time to look over the rules. Despite other regions in Canada, such as Vancouver, taking a more crypto-friendly stance, BC has doubled down on its restrictions, converting the temporary measure into a permanent ban.

It's still unclear how this would affect current businesses like Bitfarms and Iren, who have already built mining and AI infrastructure in the province.

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