- New cryptocurrency mining projects don't have access to electric power in British Columbia
- This limits value-added developments in rural areas, damages economic efficiency
According to a white paper by Conifex Timber (Conifex), the government of British Columbia’s recent moratorium on cryptocurrency mining is illegal and even works against its own stated carbon emission mitigation and economic targets, the niche publication Market Screener wrote.
The B.C. government enforced a moratorium on new cryptocurrency mining projects gaining access to electric power in the province in December 2022. This occurred against the backdrop of more favorable crypto mining regulations south of the border.
Heavy costs on residents
Among the disadvantages imposed on residents of the province are lost indigenous reconciliation opportunities, limitations on value-added developments in rural and marginalized forest communities, and a loss of economic efficiency overall. According to Conifex, the temporary ban sets a dangerous precedent in terms of arbitrary government policies being enacted in the future.
In addition, the action stifles innovation and employment and undermines regulatory autonomy and integrity.
Conifex CEO Ken Shields commented:
By taking a narrow view of next-generation data centers as simply cryptocurrency mining ventures, the moratorium also effectively prevents British Columbia from participating in the rapidly evolving digital payment system technology boom now underway. The moratorium limits the ability for developers and operators of advanced computing technologies, that all of us will increasingly rely on in our daily lives, from locating in our home province.
The company appealed the ban
Conifexhas lodged an appeal against the moratorium in theSupreme Court of British Columbiaand filed a notice of civil claim against BC Hydro, also in theSupreme Court. It demands BC Hydro provide services forits proposed high performance computing (HPC) projects. They are also seeking general damages against the provider.
The White Paper is part of the plaintiff’s submission to the government’s consultations on the future of the HPC industry in British Columbia. It calls out a number of “misleading” claims in BC Hydro’s report on crypto mining, which the government used to justify its moratorium. Conifex concludes that the government’s enforcement of the moratorium reflects an abdication from its basic obligation to serve the public.
