After being well-known as a crypto miners` hotspot for several months, the Canadian province of Quebec poised the acceptance for any new crypto mining projects on Thursday, June 6. The province can start the approval of new mining projects after it has taken the necessary period to consider placing restrictions on their operations and increase electricity rates. Quebec Energy Minister Pierre Moreau in his report claimed that the new rules are aimed to welcome only “the best among the [crypto mining] companies” to the province; Hydro-Québec Distribution President Eric Filion affirmed that the restrictions are to defend Quebec citizens from having to pay higher rates for the electricity they use.
As reported by Reuters, Quebec government started the suspension when the state-owned Hydro Quebec power plant had demanded that the province confined the general amount of power available to all crypto miners in the region to 500 megawatts; 17,000 megawatts were required by crypto miners for their purposes.
Hydro Quebec has also begged Quebec’s energy board to regard placing a premium on energy sold to cryptocurrency miners in order to grow the province’s profits. Applications for the establishment of mining rigs in Quebec from companies in China and other countries have increased after many of the world’s governments ran placing restrictions on the amounts of electricity that crypto miners are let for using. Quebec’s availability of (mostly) sustainably-produced, inexpensive electricity joined with its political stability has made this region a very attractive for foreign miners.
The suspension announcement follows just a week after Quebec lifted a prohibition that prevented energy firms from supplying crypto-mining operations with any electricity. The province’s government was reportedly disquieted that the ban went too far, and suppressed the growth of the crypto industry in Canada.