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Canada`s Quebec Province Suspends CryptoMining Applications

 

In a recent announcement, Canada`s Quebec Province stated that it will be putting on hold all new Crypto-mining applications to allow for the consideration of possible energy price hikes and the tightening of regulatory restrictions so as to sanitize the sector.

 

The decision to suspend new cryptocurrency mining applications follows an initial monetorium that was handed down on energy producing companies to temporarily put a hold on the sale of energy to digital currency miners.

 

According to Minister Pierrre Moreau, Quebec is currently focused on establishing new guidelines intended to bring in “the best among the companies”, with the ultimate goal of casting Canada in the mould of a high-flying cryptocurrency mining hub.

 

Hydro Quebec and its dealings

 

Hydro Quebec is the body that powers Bitcoin mining operations and all other cryptocurrency mining operations in Canada. Representatives of this body are reported to have made demands for the imposition of limits on the total quantity of energy that is routinely made available for crypto mining operations; they want a 500 megawatts-limit placed.

 

Such a limited quantum of megawatts may well be able to operate a ‘small aluminum smelting plant’. However, that is way below what the mining industry requires. It will be recalled that miners had initially requested for the supply of 17,000 megawatts of energy.

 

Hydro Quebec appears to be bent on making demands that are for the most part not favourable to crypto mining companies in Quebec, especially as it has made further demands for increases in the respective prices of all the energy used by the industry.

 

Whiles these demands aren`t in the best interest of cryptomining companies, they are intended to ensure a significant rise in annual revenues that accrue to Hydro Quebec. This will allow the entity maintain power rates consumed by both regular businesses and households.

 

In a statement recently released by the president of Hydro Quebec, Eric Filion, he made the following admissions: “we are asking the Province`s energy board to quickly determine how much it should charge digital currency miners, and how much energy should be allocated the industry while addressing the need to maximize revenues and job creation.”

 

Owing to the relatively low prices of energy and government stability in Canada, crypto mining companies from locations such as South Korea, China and some neigbouring countries have tended to embark on digital currency mining projects in Canada. This has especially been the case since January this year.

 

Marc-Antoine Pouliot, spokesperson for Hydro Quebec is reported to have said that cryptocurrency mining companies are usually rewarded with energy for their operations in exchange for their investments into Hydro Quebec`s transmission network. Such investments are of immense value to Hydro Quebec since they enhance the status and pedigree of the company in Canada`s power sector.

 

In recent times however, demand for energy appears to have exceeded supply - a growing challenge and concern to Hydro Quebec. They are looking to cut down on the amount of energy supplied to the digital mining industry. Pouliot disclosed this reality when he reportedly said, “we won`t be able to power all the projects that we are receiving. This is evolving very rapidly, so we have to be prudent.”

 

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