New York State is actually known for not being that great in terms of cryptocurrency businesses. BitLicense state requirement is making it hard for crypto businesses to operate. This basically becomes tough and expensive at the same time. Since there is a desire to change this, state regulators try to attract cryptocurrency miners.
When took a look at currency rates, cryptocurrency miners simply cannot find a reason to consider the state as a base of operation. The regulatory ecosystem is quite problematic. We do not expect this to change in the near future. However, access to quite cheap electricity might be in place soon, which might attract some miners.
New York regulators proposed a brand new rate structure for electricity. The miners that do contemplate a set up can negotiate favorable prices. Massena municipality is the main part to consider because the utility provider is going to review all contracts at an individual rate. Also, it is going to make sure that other clients will not suffer higher rates because of the appearance of potential mining firms.
The news comes at a very interesting time. Just at the start of 2018 we saw regulators in New York deciding that it is a good idea to increase overall electricity rates for firms that were involved in cryptocurrency mining. As expected, the decision did not work out great for the state. It is possible that other reasons might have led to the change but we all know how fast miners can move if electricity rates are not good.
John Rhodes, NY State Department of Public Service Chair, declared:
We must ensure that business customers pay a fair price for the electricity that they consume. However, given the abundance of low-cost electricity in upstate New York, there is an opportunity to serve the needs of existing customers and to encourage economic development in the region.
There are now many investors and mining firms that want to find cheap electricity rates. Competition is thus really dire. The New York state now tries to be involved in the industry and wants to do it fast. However, we do not know if a lot of electricity will actually be provided for mining companies. We should mention that based on overall consumption, it is possible that limitations will apply.
We have to acknowledge that the news does come at quite a good time for the cryptocurrency industry. We have many negative developments that happen when we look at price so such news might actually bring in some speculators and investors. Cryptocurrency mining operators usually take full advantage of hydroelectric power as a good renewable energy source. What NY offers at the moment might not be enough for the really serious miners. However, it is still an indicator that people at state level see cryptocurrencies as something they need to look at and bring in businesses in the industry.