Canada’s British Columbia Seeks To Block Bitcoin Mining Operations

Despite the Bitcoin mining industry making considerable progress and growth over the last year, Canada’s British Columbia province prefers to look the other way around. Lawmakers in BC are planning crypto mining operations amid their excess use of electricity.

BC Cracks Down On Crypto Mining Operations

The Energy Minister of British Columbia, Josie Osborne, declared on Thursday, April 11, that the province is not willing to pursue additional large-scale projects to cater to private cryptocurrency miners. Instead, the focus is on ensuring sufficient electricity infrastructure for the province’s future, in collaboration with BC Hydro. Osborne emphasized the importance of regulating electricity services for energy-intensive cryptocurrency miners, given their limited local job creation.

BC’s abundant hydroelectric energy resources have attracted Bitcoin mining activities, characterized by the operation of powerful computer arrays round-the-clock. In late 2022, the province halted all new crypto connections, suspending 21 projects that would have necessitated energy equivalent to more than two Site C projects annually.

Earlier this year, the provincial court supported the province and BC Hydro, rejecting a company’s plea to permit additional power connections for crypto firms. Earlier in February, Justice Michael Tammen said:

“Devoting such a large proportion of the available electrical power supply to one industry would leave less energy for other uses which might result in increased costs to all other residential and industry customers in BC”.

Will BC Ban Bitcoin Mining Activities?

The province is considering amendments to the Utilities Commission Act aimed at imposing strict regulations, and potentially even outright bans, on utility services for cryptocurrency mining activities.

BC Hydro has disclosed that it currently provides electricity to seven crypto-mining operations in British Columbia, collectively consuming 166 megawatts of power. The upcoming Bitcoin halving is only likely to increase this energy consumption as miners deploy more BTC machines to mine new blocks.

However, the Bitcoin industry has also contributed to strong revenue for the respective regions. Earlier this week, even Paraguay was considering a ban on Bitcoin mining, however, it has withdrawn the plan.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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