Canadian Court Bans Crypto Mining

Judge Michael Tammen has approved an 18-month moratorium on crypto mining in the Canadian province of British Columbia. The court had been challenged by Conifex, which argued that the B.C. provincial power utility’s ban on crypto mining was discriminatory, unjustified, and illegal.

Hard blow for Canada’s crypto miners

The days ahead could be tough for companies carrying out crypto mining in the Canadian province of British Columbia. The Supreme Court of the Province of British Columbia has approved a moratorium on crypto mining by BC Hydro, the provincial electricity utility.

The Judge Michael Tammen ruled that BC Hydro‘s decision was reasonable, non-discriminatory and legal. In his view, BC Hydro‘s ban on crypto mining preserves affordable access to energy for the entire population.

The Supreme Court of British Columbia ruled in a dispute between British Columbia’s electricity utility, BC Hydro, and the company. BC Hydro to the company Conifex.

By December 2022, BC Hydro had imposed an 18-month moratorium on new crypto mining projects. The provincial utility felt that crypto mining consumes a lot of energy without creating enough jobs. Thus, BC hydro felt it wiser to supply this electricity to industries that generate less carbon and more jobs and economic opportunities.

BC Hydro’s moratorium had severely prejudiced Conifex, a forestry company looking to move into crypto mining. Conifex had installed two mining farms just waiting for an interconnection from BC Hydro. The company took the matter to the provincial supreme court, arguing that the moratorium against crypto mining companies was discriminatory, unjustified and illegal. Unfortunately, the company’s application was rejected by the Court.

Conifex takes issue

Not surprisingly, the provincial supreme court’s decision was welcomed by BC Hydro and criticized by Conifex. In a statement to the press, Conifex stated that the judge’s decision Michael Tammen is a missed opportunity for British Columbia. For Conifex, crypto mining can stimulate inclusive economic growth and innovation.

Conifex continues to believe that the provincial government is missing out on several opportunities to improve energy affordability, accelerate technological innovation, strengthen the reliability and resiliency of British Columbia’s electricity grid and achieve more inclusive economic growth.

Conifex

British Columbia is not the only Canadian province to ban crypto mining. The Canadian provinces of Quebec and Manitoba have imposed similar restrictions on the mining industry. The US state of New York has done the same for 2 years in particular.

All these restrictions have not blocked cryptocurrencies. On the contrary, it’s the states imposing the restrictions that have seen companies migrate to other entities, thus harming their own citizens. Instead of fighting crypto mining, states should regulate it and profit from the industry. Some have understood this like Oman, the Missouri, Kenya, and Congo.