What Permits Are Required to Mine Bitcoin in New York

[Nomad]

New York accounts for most of the Bitcoin mining activities in the United States. New York covers about 20 percent of Bitcoin mining in the US. If someone wants to start Bitcoin mining in New York, what kind of mining permits are required? Which government agency is responsible for giving mining permits in New York?

 

[Heatman]

From this news Article, it's very obvious that the New York government is all out to crack down on cryptocurrency mining in the state. According to the report, unless there's a proof of work mining company uses 100% renewable energy, they are not allowed to mine cryptocurrencies in the next 2 years.

 

[Eric]

New York accounts for most of the Bitcoin mining activities in the United States. New York covers about 20 percent of Bitcoin mining in the US. If someone wants to start Bitcoin mining in New York, what kind of mining permits are required? Which government agency is responsible for giving mining permits in New York?

Interesting question. My first thought was that bitcoin would be regulated by some kind of financial regulatory agency, but turns out it's actually regulated by New York’s Department of Environmental Conservation under the Clean Air Act. Case in point, last year New York denied a Clean Air Act Title V air permit for a proposed gas-fired power plant that would have been used for bitcoin mining. The State determined that the plant's operations “would be inconsistent with the statewide greenhouse gas emission limits established in the Climate Act.” The plant would have also discharged hot water into a nearby lake, which worried local residents concerned about fishing and tourism (rightfully so).

I'm not familiar with all the ins-and-outs of crypto but there's got to be a better way to do digital currently. @Heatman, you mentioned they'd probably have to transition to 100% renewables to be viable in New York. I'm not so sure about having to be 100% but they obviously can't be burning loads of gasoline for bitcoin proof-of-work. Maybe a bitcoin plant fueled by natural gas (lower carbon emissions) would be acceptable to New York State? There's lots of money involved here so I'm sure someone's working on this issue...but yeah, short of using 100% renewables it seems like you're always going to have someone protesting bitcoin mining.

 

[Bizdustry.com]

To mine Bitcoin in New York, you must consider various permits and requirements. Please note that regulations may differ, so it's important to consult with local authorities or legal experts for up-to-date information. Here are a few general permits that may be relevant:

1. Business Registration: Typically, you need to register your mining operation as a business entity. This could involve registering with the New York Department of State or other local agencies.

2. Electricity Regulations: Compliance with electricity regulations is crucial since Bitcoin mining requires substantial power consumption. Ensure that your mining operation follows local laws regarding electrical safety, usage, and permits.

3. Environmental Permits: Mining activities can impact the environment, so it may be necessary to comply with environmental regulations. You might need permits related to waste management, air emissions, water usage, or other environmental concerns.

4. Building and Zoning Permits: Depending on the size and location of your mining operation, you may require building permits or adherence to zoning regulations. Consult local building departments or authorities to ensure compliance.

5. Tax Obligations: Mining Bitcoin generates income, so understanding and fulfilling tax obligations associated with your mining activities is crucial. Seek guidance from a tax professional or the New York State Department of Taxation and Finance.

Remember, this list is not exhaustive, and specific permits required can vary based on factors such as mining scale, location, and jurisdictional regulations. Always seek advice from professionals who can provide tailored and accurate information for your specific situation.