Canada Rejects Crypto Mining Firms and Operations

  • Canada has placed an 18-month moratorium on new cryptocurrency mining operations, 
  • The proposal will pause or slow down approvals of new crypto-mining operations
  • Manitoba has the second-cheapest electricity rates in the country

According to local media sources, the province of Manitoba in Canada has placed an 18-month moratorium on new cryptocurrency mining operations, citing the potential for the local grid to be swamped by new projects.

The proposal is the latest in a series of jurisdictions to pause or slow down approvals of new crypto mining operations due to concerns about miner load adversely affecting local residents.

Finance Minister Cameron Friesen, the minister responsible for Crown-owned Manitoba Hydro, said Monday,

We can’t simply say, ‘Well anyone can take whatever (energy) they want to take and we’ll simply build dams.

For 18 months, the government will prohibit new crypto-mining operations from connecting to the grid. However, the 37 mining facilities that already exist will not be affected.

According to statistics, Manitoba has the second-cheapest electricity rates in the country, after Quebec. This has attracted a large number of miners.

As per the minister, seventeen additional miners have requested to join the grid, and their energy demand would equal 371 megawatts (MW). This 371 MW is nearly half of the Keeyask generating station’s generating capacity, which went into full service earlier this year.

In the past 15 years, Manitoba Hydro’s debt has tripled due to the construction of two mega-projects totaling CAD $3.7 billion ($2.75 billion): Keeyask and the Bipole III transmission line. According to Manitoba Hydro, around 40% of utility fees are allocated to debt services.

In other news, the new law, issued by New York Governor Kathy Hochul, prohibits proof-of-work (PoW) mining activity in the state for two years. The PoW mining embargo will prohibit new mining operations and deny license renewals to those already operating in the state. Any new PoW mining facility in the state would be permitted only if it used 100% renewable energy.

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