New cryptocurrency mining operations have been banned in the city of Plattsburgh, New York.
The city announced the move because those engaging in crypto mining have been causing electric bills soar. Plattsburgh Mayor Colin Read introduced the measure on March 1 in order to “prevent miners from using all the city’s cheap electricity,” according to the report.
Failing to comply with the new law could result in penalties of up to $1,000 per day. The measure passes and 18-month moratorium on any new commercial cryptocurrency mining operations, but existing operations will not be banned as these will be allowed to continue.
Local Plattsburgh residents had been complaining about unusually high electric bills, prompting Mayor Read to introduce the measure. The city has a cheaper electricity than your average NY city thanks in part to a nearby hydroelectric power dam, which those engaging in Bitcoin mining have been lured in by.
Mayor Read added that some people saw their bills go up by $100 to $200 per month, while some business also felt this effect. A local store called Mold Rite Plastics saw their monthly bill go up by $22,000.
