Vancouver Explores Bitcoin-Friendly Status Amid Provincial Mining Ban

According to CoinDesk, Vancouver's City Council has initiated steps to become a 'bitcoin-friendly city,' despite British Columbia's ongoing province-wide ban on bitcoin mining, which is set to remain in effect until December 2025. The ban, which began in December 2022, was implemented to address energy concerns and was upheld by the B.C. Supreme Court in early 2024. The court ruled that the policy was reasonable and aligned with public utility regulations. BC Hydro, the province's largest electricity utility, generates over 90% of its electricity from hydroelectric power, which is a significant factor in the province's energy policies. The motion in Vancouver, introduced by Mayor Ken Sim, highlights the financial benefits of bitcoin and bitcoin mining. However, it cannot directly influence mining activities due to electricity regulations and the jurisdiction of BC Hydro, which falls under provincial control. A spokesperson for BC Hydro confirmed that the province is working towards a permanent cryptocurrency mining policy. Earlier this year, the B.C. legislature passed an updated version of the Energy Statutes Amendment Act, initially drafted after BC Hydro temporarily suspended bitcoin mining connections to the provincial grid. This updated Act allows the provincial government to bypass the BC Utilities Commission, granting it direct authority to regulate electricity services specifically for cryptocurrency. Conifex Timber, a company with bitcoin mining farms in the province, challenged the conditions in court, arguing they were discriminatory and unreasonable. However, a provincial judge disagreed with their claims. The move towards regulating electricity for crypto-mining projects has raised questions about whether similar regulations could be applied to other industries. Lawyers from McCarthy Tetrault, a Canadian law firm, noted that during the debate over the updated Act, the leader of the provincial Green Party argued that industries like Liquified Natural Gas and emerging technologies such as AI should face similar energy regulations due to their high energy consumption and perceived limited economic benefits. Local bitcoin mining bans are not unique to British Columbia. New York State has implemented a moratorium, with exceptions for renewable energy sources. In contrast, states like Arkansas and Montana have enacted bills to protect bitcoin miners from what they describe as 'discrimination.' Meanwhile, Pennsylvania recently lifted its mining ban to focus on advancing other energy conservation initiatives.