New York AG warns against crypto investments amid state push to ban mining

New York’s attorney general on Tuesday said the state is considering a ban of cryptocurrency mining amid concerns over power usage and demand. The statement comes after news that New York regulators are probing whether energy companies providing services to crypto miners may be engaging in non-competitive practices, as well as other potential issues with electricity use.

The “new york crypto ban” is a warning from the New York Attorney General that investors should be wary of cryptocurrency investments. The state has started to push for a ban on mining in new york.

New York AG warns against crypto investments amid state push to ban mining

 

While New York continues to push for a ban on proof-of-work (PoW) crypto mining, the attorney general cautioned investors about the hazards of investing in cryptocurrency. 

Investors are “losing billions” in crypto, according to New York Attorney General Letitia James, who issued an investor advisory on Thursday. Even well-known digital assets that are traded on reputable exchanges might fall, according to James. As a result, the attorney general believes that crypto investments give investors “more anguish than benefit.”

Apart from that, James advised New Yorkers to exercise extreme prudence while investing in cryptocurrency. Because of their volatility, the attorney general believes that these investments may end up being a source of concern rather than a source of wealth.

The bitcoin market is notoriously volatile. Last month, the stock market hit new lows, causing investors to lose hundreds of billions of dollars. New Yorkers should exercise caution and caution before investing their hard-earned funds in this volatile market.

— New York Attorney General James (@NewYorkStateAG) June 2, 2022

The volatility of the market, problems in cashing out, high transaction charges, and the instability of certain stablecoins were all mentioned in the notice as concerns that might deter investors. Investors were also cautioned that many digital currencies are unregulated, according to the notice.

The warning came as the New York State Senate approved a measure prohibiting the practice of proof-of-work mining in the state. New mining operations will be outlawed if Governor Kathy Hochul signs the measure, and those who already have permits will not be allowed to renew them.

Related: A US energy business has opened a crypto-mining operation in the Middle East, which will utilise stranded natural gas.

Meanwhile, KenGen, a Kenyan energy firm, has appealed to Bitcoin (BTC) miners to buy its extra renewable energy. According to a corporate representative, there is plenty of room in the nation for miners, and they are happy to welcome them.

BTC mining income is also on the decline as the bear market persists. The daily mining income hit a fresh eleven-month low of $22.43 million on May 24. This is about half of the $40.57 million that was reported at the start of May 1.

Cryptocurrency mining is the process of using computer hardware to validate transactions and secure the network. The New York AG has warned against investing in cryptocurrencies amid a push to ban cryptocurrency mining in the state. Reference: what does mining crypto mean.

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