MASSENA – A moratorium on cryptocurrency mining operations in the city has been extended for another six months.
Without comment during a public hearing, and by a 5-0 vote, the Massena Town Board extended the moratorium from Dec. 31 to April 30 when they met last week. The previous moratorium had expired on December 1.
Although the moratorium is officially in place until April 30, City Supervisor Susan J. Bellor said they could vote to end it if they can adopt regulations that will govern city facilities. City Attorney Eric J. Gustafson has been working on drafting the regulation for the board's review and approval.
City officials began discussing a possible moratorium in July 2018 because city regulations did not address cryptocurrency mining operations and they needed time to implement the regulations. Marine boxes and trailers were among the concerns when the board approved its first moratorium on any future operations.
Before the first moratorium was enacted, North Country Data Center, a subsidiary of cryptocurrency mining company Coinmint, had established operations at the former Alcoa East plant, although the city code did not address data centers or technology parks. Although nothing in the code addressed cryptocurrency operations, the Massena Planning Board approved the site plan and special use permit for the operation because it conformed to the guidelines that were part of the code.
Since then, they have agreed on several occasions to continue the moratorium while Gustafson continues to draft local law.
Recent public hearings have generated little comment. A meeting last January to extend the moratorium through July 31 had generated only two written comments, one directed at Bellor and another directed at Councilwoman Debra A. Willer.
Bellor had received correspondence from a cryptocurrency operation that he did not identify. He said they requested that current cryptocurrency mining operations in the industrial zone, which wanted to expand their capabilities and infrastructure, not be subject to the moratorium as long as they remained within the overall footprint of the already existing industrial site.
Willer said he also received an email from a person who was in favor of extending the moratorium.
Governor Kathleen C. Hochul also enacted a two-year moratorium on cryptocurrency mining operations in the state in November 2022.
The state moratorium applies to new permits for cryptocurrency mining companies that run on fossil fuels and use proof-of-work authentication methods to validate transaction data. The Bitcoin network is based on proof-of-work authentication.
Under the bill, the Department of Environmental Conservation must also study the environmental impacts of the crypto industry.
New York was the first state to impose such a ban.
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