Quebec Suspends Development of New Cryptocurrency Mines

Quebec Suspends Development of New Cryptocurrency Mines

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March 24, 2018 by Bitzamp
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The Canadian province of Quebec has suspended the development of new cryptocurrency mining operations. Also Read: No Legal Basis to Ban Cryptocurrency Mining, EU Official Says According to local newspaper Les Affaires, the state officials tied to utility firm Hydro-Quebec are no longer reviewing new applications for crypto mining operations, mainly due to the high
Quebec suspends new bitcoin mines

The Canadian province of Quebec has suspended the development of new cryptocurrency mining operations.

Also Read: No Legal Basis to Ban Cryptocurrency Mining, EU Official Says

According to local newspaper Les Affaires, the state officials tied to utility firm Hydro-Quebec are no longer reviewing new applications for crypto mining operations, mainly due to the high demands placed on the hydroelectric dam by existing operations.

Quebec, known for its cheap electricity, has been a popular hub for cryptocurrency mining activities. The authorities are however concerned about the impact of the energy consuming operations on its hydropower.

The Minister of Energy and Natural Resources, Pierre Moreau, said that cryptocurrency mines require a lot of energy, but only generate a small number of jobs in comparison with other factories, such as aluminum refining.

He also indicated that the region may become unable to meet the energy demands of crypto-miners.

“The objective of government is to insure to all Quebecois that during winter, Hydro-Quebec doesn’t say, ‘well, excuse me, I cannot provide [energy] because we’re in the middle of mining cryptocurrency.'”

The report also revealed that a Hydro-Quebec document had indicated the impossibility of the utility firm to provide sufficient energy for each project that had requested to set up mining facilities.

In February, Hydro-Quebec noted the possibility of raising the electricity tariff of crypto miners, given the accumulated demand in the region. The province had been flooded with requests for numerous megawatts project over the past few months.

Officials are currently working on new guidelines for crypto mining facilities which will permanently address the issue, so that the authorities can resume reviewing applications again.

 


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