The British Columbia government has suspended electricity supply to bitcoin (BTC) mining firms in the region for 18 months. The move does not affect existing crypto miners.
There is no room for new bitcoin miners
Electricity supply to new bitcoin (BTC) mining facilities in the region will be suspended for 18 months by the British Columbia Hydro and Power Authority (BC Hydro).
In addition to maintaining the city’s clean energy supply, the move will give authorities time to engage with crypto miners and develop a lasting framework for bitcoin mining operations.
According to Josie Osborne, Minister of Energy, Mines, and Low Carbon Innovation for British Columbia, crypto mining activities in the region consume a great deal of electricity and provide very few jobs.
There are hard times for bitcoin miners
Global financial ecosystems have had quite a challenging year in 2022, and bitcoin mining revenue and hash rate have been declining significantly in recent months, as a result of crypto winter.
As During the first quarter of 2022 alone, Core Scientific, the largest publicly-traded bitcoin mining company in the country, recorded a $400 million quarterly loss, totaling $1.7 billion in losses.
Furthermore, authorities from across various jurisdictions are increasingly targeting Bitcoin miners as a result of the gloomy market conditions that have caused the bitcoin (BTC) price to drop by more than 70 percent from its high in late 2021 of nearly $70k.
Manitoba, a province in Canada, placed an 18-month moratorium on bitcoin mining operations earlier this month.