Canadian Border Town Halts Crypto Mining to Draw Up Regulations

Divya  |  Jul 24, 2021

Massena, a small New York town along the Canadian border has put the brakes on its crypto mining operations. The town has imposed a 90-day moratorium on new crypto miners, during which it will draw up fresh regulations to ensure that mining facilities and rigs are prevented from littering areas.

Canadian Border Town Suspends Crypto Mining Operations

As per a report published by the Associated Press, Massena has suspended all new mining operations for Bitcoin and other cryptocurrencies for 90 days. The town’s supervisor Steve O’Shaughnessy said that the decision was taken after trailers filled with mining equipment started popping up on the main road.

“We don’t want Massena to be filled up with these sea boxes throughout the town,” he asserted. “We don’t want it littered with these trailers that are pumping out Bitcoin.”

Town officials are planning to leverage the 90-day restriction to formulate rules that keep Massena’s roadsides uncluttered and make mining facilities more “presentable.” 

“We just want to make sure if they’re going to come here, that it’s a nice presentable building,” O’Shaughnessy stated.

Meanwhile, the town’s power supplier Massena Electric is in negotiations with three crypto miners. According to a WWNY report, the company is making sure that any deal it makes with these businesses protects its customers, who will also benefit from the increased sales. The energy supplier also has its own moratorium on working with new mining firms.

China’s Crypto Crackdown Brings Opportunities for Massena

Like many other North American towns, Massena has seen an influx of crypto miners ever since China banned mining operations in many of its provinces. Ousted companies scouring for greener pastures look towards the region for cheap electricity and legal support.

This bodes well for border communities that were hammered by job losses in factories for nearly a decade. The emergence of Bitcoin and other crypto mining companies indicates that new jobs are coming out and industrial activity is regaining its lost momentum in places like Massena.

As reported earlier, North America’s contribution to the global Bitcoin mining share is steadily increasing. The United States is now the second-largest hub for crypto mining with 17% of the world’s BTC miners. That is a staggering increase of 151% from last year’s mining rates in September. With more crypto miners flocking to the region, it’ll become easier for the industry to seek the support of regulators to continue their expansion in the future.

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