British Columbia To Ban New Crypto Mining Grid Connections Permanently
Canada’s British Columbia is making headlines as it prepares to impose a permanent ban on new grid connections for operations related to Bitcoin and other cryptocurrencies. This move, articulated in a statement from the province’s Ministry of Energy and Climate Solutions, marks a significant shift in the region’s energy policy and its approach to cryptocurrency mining, particularly in light of the sector’s growing demands on electricity.
Context: The Regulatory Landscape
The upcoming regulatory changes, slated for implementation in Fall 2025, will specifically limit the amount of electricity available for data centers and artificial intelligence (AI) operations. However, the crux of the new regulations centers on a complete prohibition of new connections to BC Hydro for cryptocurrency mining farms. BC Hydro, the primary electricity distributor in the region, generates most of its power via hydroelectric stations, capitalizing on British Columbia’s rich natural resources.
Economic Justifications for the Ban
The British Columbia government justifies this legislation by emphasizing the need to prioritize electricity for sectors that are more beneficial to the local economy. According to the ministry, the aim is to ensure that energy resources are allocated to industries that not only provide job opportunities but also contribute to public revenue and exhibit higher potential for decarbonization. These priorities include sectors such as mining, upstream natural gas, liquefied natural gas (LNG), and manufacturing.
A Suspension Extended: From Temporary to Permanent
It’s noteworthy that new cryptocurrency mining connections had already been suspended since December 2022, due to what officials described as the industry’s “disproportionate energy consumption and limited economic benefit.” Initially, this moratorium was intended to last for 18 months. However, as 2024 approached, the government opted to extend the suspension to a total of 36 months. With the latest regulatory framework, the province has now decided to make the ban on new mining connections permanent, effectively putting an end to any new cryptocurrency mining operations reliant on BC Hydro’s electricity.
Power Allocation for Other Industries
For other sectors affected by power limitations, BC Hydro plans to enter a competitive process in early 2026. This allocation will find 300 megawatts (MW) set aside for AI technologies, 100 MW for data centers, and provisions for hydrogen exports that will be determined based on market conditions. This strategic distribution reflects a concerted effort to channel electricity toward more economically sustainable and environmentally friendly industries.
Global Perspective: Cryptocurrency Mining Pushback
British Columbia isn’t an outlier in the ongoing global scrutiny of cryptocurrency mining. Similar trends are emerging internationally. For example, Laos—a country rich in hydroelectric resources—is reportedly moving towards an exit strategy for cryptocurrency mining, with plans to phase it out by the end of Q1 2026. The Laotian government aims to redirect its energy resources towards sectors that are deemed more valuable to the local economy, such as AI, metal refining, and electric vehicle production.
On the other side of the globe, Brazil presents a contrasting narrative. Cryptocurrency mining companies in Brazil are actively negotiating contracts with local electricity providers to leverage the country’s surplus of renewable energy. This includes efforts by Tether, the issuer of the USDT stablecoin, to acquire a South American agricultural and renewable electricity enterprise, which is intended to supply biomass-generated electricity for mining operations.
Bitcoin Market Movements
In the broader cryptocurrency market, Bitcoin has experienced a recent pullback, with its trading price hovering around the $108,600 mark. Investor sentiment remains volatile, reflecting ongoing uncertainties in the market in light of regulatory changes and industry dynamics.
Disclaimer: For information purposes only. Past performance is not indicative of future results.