Crypto Money Mining is banned in New York’s North East

Crypto Money Mining is banned in New York's North East
Crypto Money Mining is banned in New York's North East

The town of Plattsburg, located in the north-east of New York, was known for its cheap electricity consumption fees. Plattsburg municipal council voted on Thursday to ban new mining facilities for 18 months, resulting in increased mining activity in the region.

The Mayor claims that the move is intended to protect the natural resources and the health of the residents of the region. In addition, according to CNBC, this decision is aimed at cutting the sharp increase in demand for residents’ electricity bills.

Plattsburg mayor Colin Read said the city offered the cheapest electricity price for the US. Residents of the area pay about 4.5 cents per kilowatt. In America, this value is 10 cents on average. Plattsburg was aiming to encourage industrial enterprises with this low electricity fee.

The mayor explained that cheap electricity has attracted many mining companies. Coinmint, Plattsburg’s largest mining company, used 10% of the city’s total energy budget in January and February. This situation has gathered the reaction of nearly 20.000 citizens. The complaints of the residents of the region increased because of the increase of electricity bills. The Mayor promised to protect the city dwellers and nature with the new law.

In addition, the New York State Service Commission said that for high-volume energy-consuming customers, electricity costs will increase starting this month. Thus, the bills of the people who consume less energy are expected to normalize.

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