As Vancouver’s City Council takes steps to explore the possibility of becoming a ‘bitcoin-friendly city’, it is important to note that British Columbia currently has a province-wide ban on mining BTC until December 2025.
The ban on bitcoin mining in B.C. was put into effect in December 2022 in response to concerns about energy consumption. This policy faced a legal challenge from Conifex Timber, which was upheld by the B.C. Supreme Court in early 2024. The court deemed the ban reasonable and in alignment with public utility regulations.
BC Hydro, the largest electricity utility in the province, relies heavily on hydroelectric power, which accounts for over 90% of its electricity generation.
While Vancouver’s City Council is supportive of bitcoin and its potential financial benefits, the ability to influence mining activities is limited due to electricity regulation falling under provincial jurisdiction, specifically controlled by BC Hydro.
“The Province continues to uphold the ban on cryptocurrency mining and is working towards implementing a permanent policy on the matter,” a spokesperson for BC Hydro stated.
Earlier this year, the B.C. legislature passed an updated version of the Energy Statutes Amendment Act in response to B.C. Hydro’s temporary suspension of bitcoin mining connections to the provincial grid.
This updated Act grants the provincial government direct authority to regulate electricity service for crypto-related activities, bypassing the BC Utilities Commission, the provincial electricity regulator.
Despite legal challenges from Conifex Timber, the court upheld the ban on bitcoin mining, citing its reasonableness. This decision has raised questions about potential future regulations on electricity availability for other industries in the province.
Notably, other jurisdictions have also implemented local bitcoin mining bans. New York State, for example, has a moratorium with exceptions for renewable energy sources. Conversely, states like Arkansas and Montana have introduced bills to protect bitcoin miners from discrimination.
Pennsylvania recently lifted its mining ban in order to focus on advancing energy conservation initiatives.