B.C. Makes Crypto Mining Ban Permanent

The Government of British Columbia is making its temporary cryptocurrency mining moratorium permanent, barring new Bitcoin mining projects from connecting to BC Hydro’s provincial power grid. This legislative move, announced as part of the Energy Statutes Amendment Act, represents the culmination of a process that began in late 2022 when the province and BC Hydro paused new connection requests from cryptocurrency miners for 18 months. Adrian Dix, Minister of Energy and Climate Solutions, stated the urgency behind the decision: “We must act with urgency to leverage our clean-electricity advantage and grow and diversify our economy.”

Officials have consistently framed the moratorium as supporting climate and economic goals by curbing an industry they claim consumes massive amounts of power while generating few local jobs. The new allocation framework will prioritize electricity for sectors like mining, natural gas, and lowest-emission LNG—industries the government believes deliver greater benefit to British Columbians. This permanent ban comes as the province manages a surge in electricity demand while attempting to grow investment and create jobs, particularly in northern B.C.

While British Columbia has never been a major hub for cryptocurrency mining, several medium-sized operations had established themselves in the province, attracted by its cool climate and renewable power mix. Companies like Iris Energy and Hive Digital maintain facilities in B.C., along with smaller projects that had been awaiting connection approval before the freeze. The province had been seen as a symbolically important jurisdiction—a clean, politically stable region that once attracted miners seeking a greener reputation for their Bitcoin operations.

Globally, the real hotspots for mining are far from B.C., with mining companies increasingly looking to Texas, parts of the U.S. Midwest, the Nordic region, the Caucasus, and Latin America where cheap and stable electricity makes large-scale mining viable. The permanent ban in British Columbia reflects a broader trend of jurisdictions grappling with how to manage cryptocurrency mining’s substantial energy demands within their economic and environmental priorities.

Kadan Stadelmann, Chief Technology Officer at Komodo Platform and a blockchain developer with over a decade of mining experience, offered a critical perspective on the ban. “Protecting the grid is a valid concern, but it’s also a convenient narrative,” Stadelmann told Decrypt. He argued that mining demand can be managed dynamically, with many miners already curtailing operations during peak hours and even helping stabilize grids by absorbing surplus power. Instead of an outright ban, he suggested regulators could design flexible pricing models or demand-response programs.

Stadelmann acknowledged valid concerns about the industry’s energy appetite and local impacts, noting that “the industry hasn’t always communicated well about its energy mix or community impact.” However, he emphasized that “the answer isn’t denial, it’s transparency and innovation,” pointing to projects using flared gas capture, hydro excess, or geothermal sources to offset emissions. He also highlighted technological solutions like modular mining rigs and better sound insulation to address noise pollution concerns that have prompted complaints from residents near mining sites in places like Texas.

The blockchain developer argued that banning an entire class of digital infrastructure over optics will simply export energy demand to dirtier grids elsewhere. “If governments truly want to preserve clean energy, they should engage with miners as potential partners, not scapegoats,” Stadelmann said, suggesting the industry could demonstrate tangible local benefits through job creation, tax revenue, and support for renewable energy build-outs if given the opportunity to collaborate rather than being excluded entirely from B.C.’s energy future.