BC Hydro Crypto Mining Ban Set for 2025 in British Columbia
The government of British Columbia has announced a permanent ban on new crypto mining connections to the BC Hydro electricity grid, with the BC Hydro crypto mining ban taking effect in fall 2025. This major policy shift aims to address unprecedented demand for electricity and ensure reliable, clean energy for local industries and residents, according to a government statement.
Background on the New Legislation
On Monday, British Columbia officials revealed a legislative package designed to manage rapid growth in power consumption. The government emphasized its commitment to supporting traditional sectors like mining, natural gas, and LNG, alongside emerging industries such as data centers and artificial intelligence (AI). “The success of proposed major projects hinges on access to reliable, clean electricity at a competitive industrial rate,” the statement explained, reporting via Cointelegraph.
The most significant change is a permanent prohibition on new crypto mining operations connecting to the state-owned utility, BC Hydro. The utility currently serves more than 5 million residents, nearly 95% of British Columbia’s population.
Targeted Restrictions and Industry Reactions
The policy distinguishes between sectors with varying economic impacts. Data centers and AI firms will face new limitations on their power usage but are still eligible for grid access. The government indicated a willingness to help these sectors grow, aiming to maximize their positive effect on British Columbians.
In contrast, the BC Hydro crypto mining ban was justified by what officials called the sector’s “disproportionate energy consumption and limited economic benefit.” British Columbia had previously imposed an 18-month moratorium on new crypto mining grid connections in December 2022 to evaluate industry needs and impacts. The recent announcement has now formalized this measure as a permanent ban.
Charlotte Mitha, president and CEO of BC Hydro, stated, “We’re seeing unprecedented demand from traditional and emerging industries. The Province’s strategy empowers BC Hydro to manage this growth responsibly, keeping our grid reliable and our energy future clean and affordable.”
Impact on Crypto Miners and Electricity Policy
The legislative update raises questions for existing crypto mining firms like Bitfarms and Iren, which operate facilities in British Columbia. It is not yet clear if current operations will be affected or if the new restrictions will only apply to new applicants. The sector has frequently argued that its role in energy consumption is misunderstood, with some advocates contending that Bitcoin mining could be aligned with green energy policies.
British Columbia joins a growing list of jurisdictions worldwide that are regulating crypto miners due to concerns about power use and limited direct economic benefit. Elsewhere in Canada, cities like Vancouver seek to develop Bitcoin-friendly environments, representing a contrast to BC’s restrictive approach.
What’s Next for Energy Use and Tech Development in BC?
As the province implements the BC Hydro crypto mining ban, it plans to facilitate growth in lower-impact industries. The BC government signaled continued support for both expanding services in data centers and adopting advanced AI technologies while taking steps to balance power supply and demand across all sectors. The regulatory changes will go into full effect in fall 2025, shaping the landscape for BC’s digital and energy-driven industries moving forward.
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