Quebec Halts Crypto Mining Approvals Pending New Restrictions
Quebec has halted approvals for new cryptocurrency mining operations while it draws up new rules and may raise energy costs.
Quebec has issued a moratorium on new cryptocurrency mining operations in a bid to give officials time to develop new restrictions and potentially increase energy costs, Reuters reported Thursday.
The Canadian province long known for its cheap hydroelectric power has formally stopped approving new projects in order to create new rules around which mining firms will be allowed to set up shop in the region, according to the news agency.
Further, Hydro Quebec, the state-owned power producer, hopes to limit the power that can be available for miners to 500 megawatts in total, or just "a fraction of the 17,000 megawatts" that miners have requested so far.
Hydro Quebec has also reportedly asked Quebec's energy board to create new rates so as to "help maximize the energy producer's revenue."
This is not the first time Quebec has halted approvals for new cryptocurrency mining firms. As previously reported, Hydro Quebec briefly stopped accepting new clients from the space in March, citing the large amount of energy demanded by miners.
At the time, the firm produced a document stating it would be unable to meet demand if every mining project that applied for space was approved.
With new restriction rules, as Reuters reported, Hydro Quebec would be able to choose "the best among the companies" vying to develop facilities in the region.
This will in turn help the province grow its economy without resulting in higher costs for local residents, said Hydro-Quebec's distribution president, Eric Filion, in a statement.
Hydro Quebec image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.