Regulators in the US state of Arkansas are discussing a bill that seeks to restrict crypto mining in sensitive areas that house military bases.
Presented by Senator Ricky Hill and House Speaker Brian Evans on January 15, the bill seeks to ban the construction of new cryptocurrency mining farms within a 30-mile radius of military installations, hospitals, clinics, and arsenals.
However, facilities that were fully up and running before December 31, 2024, will be allowed to operate.
Specifically, Senate Bill (SB 60) will amend the Arkansas Data Centers Act of 2023, originally introduced by State Senator Joshua Bryant.
This legal framework was introduced to govern data centres, including those involved in cryptocurrency mining, by outlining their rights and obligations.
The proposal comes a little over a month after Hill, alongside Cabot city Mayor Ken Kincade, held a news conference raising concerns over a new crypto mine being constructed near the Little Rock Air Force Base.
Notably, the site is less than 5 miles from the military installation.
At the time, Kincade said that crypto-mining operations cause “loud disturbances and pollution that produce negative effects” for locals and wildlife while vowing to do “anything” within legal boundaries to “remove” the site.
Meanwhile, Hill questioned the decision to construct the mining farm near the military air base, raising concerns about its potential implications for national security.
If passed, this mining operation will be shut down in accordance with the new restrictions.
Interstate Holdings, which owns the facility in question, has criticised the bill, with the firm’s Vice President Dustin Curtis arguing that the legislation is unnecessary and unfair.
As of January 16, the bill has been referred to the Senate’s City, County & Local Affairs Committee for further review.
Ties with China
Another concern around these crypto mining operations popping up within US borders is their ties with China.
Several of these operations are directly or indirectly owned by Chinese entities.
Last year, MineOnce, a mining facility majority owned by Chinese nationals, received a divestment order from the Biden administration for being extremely close to the Francis E. Warren Air Force Base in Cheyenne.
Tech giant Microsoft issued an alert in late 2023 warning that the site could be a full-spectrum intelligence collection operation.
A month later the same year, Senator Elizabeth Warren warned that one-third of the crypto mining facilities in the US were Chinese-owned, and some had direct ties to the Chinese government.
Further, Warren alleged that these firms have secretly sent millions of dollars to China and urged the government to take immediate action.
Crypto mining concerns across the globe
Beyond the US, the crypto mining sector has increasingly faced scrutiny due to its significant impact on local power grids, environmental degradation, and reports of illegal mining activities.
More nations are now drafting regulations that seek to control this burgeoning sector as crypto becomes mainstream.
For instance, Russia legalised crypto mining for registered entities and put limits in place for smaller miners.
Meanwhile, a six-year ban on crypto mining, effective from January 1, 2025, to March 15, 2031, was put in place for multiple regions where mining activities have strained local power grids.
Elsewhere, regulators in Malaysia and Thailand have led crackdowns on illegal mining operations that were accused of electricity theft.
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