British Columbia Implements Ban on New Crypto Mining Power Connections

According to Cointelegraph, the government of British Columbia has announced a ban on new cryptocurrency mining connections to the BC Hydro power grid, citing an unprecedented demand for electricity. This decision is part of a broader legislative initiative aimed at stimulating the economy and ensuring the availability of power for key sectors. The new regulations, set to take effect in fall 2025, will impose limits on power available to data centers and artificial intelligence (AI), while permanently banning new BC Hydro connections for crypto miners. Charlotte Mitha, president and CEO of BC Hydro, emphasized the need for responsible management of the growing demand from both traditional and emerging industries. BC Hydro, which serves over 5 million people and covers approximately 95% of the local population, is tasked with maintaining a reliable and clean energy grid. The government has expressed a more favorable stance towards data centers and AI, aiming to support their growth for the benefit of British Columbia's residents. In contrast, the ban on crypto mining connections is attributed to the sector's disproportionate energy consumption and limited economic benefits. Despite the government's stance, some in the crypto mining industry argue against the negative perceptions of their energy use. Advocates like Bitcoin environmentalist Daniel Batten have been working to counteract misconceptions and highlight how Bitcoin mining can align with energy and climate initiatives. Meanwhile, other Canadian provinces, such as Vancouver, are exploring more crypto-friendly policies. British Columbia initially imposed an 18-month ban on new crypto mining grid connections in December 2022 to develop a balanced framework. However, this has now evolved into a permanent ban. The impact of this decision on existing firms in the region, such as Bitfarms and Iren, which operate Bitcoin mining facilities and AI-focused data centers, remains uncertain. The move reflects a broader trend of governments grappling with the energy demands of cryptocurrency mining and its implications for local economies and resources.