Massena Town Board extends cryptocurrency moratorium | Business
MASSENA — A moratorium on cryptocurrency mining operations in the town has been extended for another six months.
With no comments during a public hearing, and by a 5-0 vote, the Massena Town Board extended the moratorium from Dec. 31 to April 30 when they met last week. The previous moratorium had expired on Dec. 1.
Although the moratorium was officially put in place until April 30, Town Supervisor Susan J. Bellor said they could vote to end it if they’re able to adopt regulations that would govern the facilities in the town. Town attorney Eric J. Gustafson has been working on drafting the regulations for board review and approval.
Town officials first started discussing a potential moratorium in July 2018 because town regulations did not address cryptocurrency mining operations, and they needed time to get regulations in place. Sea boxes and trailers were among the concerns when the board passed its first moratorium on any future operations.
Prior to enactment of the first moratorium, North Country Data Center, a subsidiary of the cryptocurrency mining company Coinmint, had set up its operation at the former Alcoa East plant, though the town’s code did not address data centers and technology parks. Even though nothing in the code addressed cryptocurrency operations, the Massena Planning Board approved the site plan and special use permit for the operation because it fell within guidelines that were part of the code.
Since then, they have agreed on several occasions to continue the moratorium while Gustafson continues to draft the local law.
Recent public hearings have drawn few comments. One held last January to extend the moratorium until July 31 had drawn only two written comments, one addressed to Bellor and a second addressed to Councilor Debra A. Willer.
Bellor had received correspondence from a cryptocurrency operation that she did not identify. She said they requested that current cryptocurrency mining operations in the industrial zone, which wanted to expand its capacities and infrastructure, not be subject to the moratorium provided they stayed within the overall footprint of the already existing industrial site.
Willer said she had also received an email from an individual who was in favor of extending the moratorium.
Gov. Kathleen C. Hochul also signed into law in November 2022 a two-year in moratorium on cryptocurrency mining operations in the state
The state moratorium applies to new permits for cryptocurrency mining companies that are powered by fossil fuels and use proof-of-work authentication methods to validate transaction data. The Bitcoin network relies on proof-of-work authentication.
Under the bill, the Department of Environmental Conservation is also be required to study the environmental impacts of the crypto industry.
New York was the first state to impose such a ban.
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