A British Columbia Supreme Court judge has ruled that a moratorium on cryptocurrency mining projects passed in the Canadian province two years ago is reasonable, according to a statement posted on the British Columbia Provincial Courts website. This was made clear in the judgment.
Forestry company Conifex Timber challenges ban
The suspension was challenged by Conifex Timber, a forestry company that has added cryptocurrency mining to its operations. Conifex and the Tsai Kay Dene Nation were planning a joint mining operation.
Judge Michael Tammen ruled that the moratorium was not only practical, but within the framework established by the state’s Public Utilities Commission Act. BC Hydro imposed a moratorium on cryptocurrency mining at the end of 2022, about a month after New York State imposed a similar moratorium on cryptocurrency mining in its territory.
Mining has ‘unique and significant’ energy demands
Judge Tanmen said the ban was based on the cost of the service, taking into account the high energy demands inherent in cryptocurrency mining. This ban is aimed at ensuring the general public has access to affordable energy.
The judge said there was evidence that cryptocurrency mining centers had “unique power consumption” characteristics. In fact, BC Hydro’s projections were far fewer megawatt-hours than would actually be needed to “serve all interconnection requests from crypto operations in 2023.”
Conifex retaliates: missed out on economic growth
Conifex said in a statement to the press that the continued ban on cryptocurrency mining is a missed opportunity for British Columbia. Without the ban, the state could have improved energy affordability, achieved higher and more inclusive economic growth, accelerated technological innovation, and strengthened the reliability and resilience of its power grid. is.
British Columbia hosts Ocean Falls Technology and several other carbon-free crypto mining projects that exist off-grid. The project will harness power from an “orphaned” hydroelectric power plant located in an abandoned mining town.