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Regulation

Canada introduces new crypto mining regulations

Redwan Eid | Apr. 30, 2019
Canada introduces new crypto mining regulations

April 30, 2019 | AtoZ Markets The Quebec province financial regulator in Canada, Régie de l’énergie, has issued a new band of regulations pertinent to cryptocurrency miners, as the Canadian electricity provider Hydro-Quebec announced on April 29.

The province regulator ordered under its new regulatory band that Hydro-Quebec, the local power producer, allocates 300 megawatts (MW) to the blockchain industry, explaining in the announcement that the “300 MW will be in addition to the 158 MW already granted to existing customers approved by Hydro-Quebec, and to the 210 MW granted to existing customers approved by municipal distributors,”

The companies which wish to get a share of the allocated power will have to go through a selection process based on four factors, including the number of jobs they created in the province, the total payroll coming from the direct jobs they provide, and the value of investment and the recovery of heat.

The new regulations’ band, as per Hydro-Quebec, give the organisation the ability to protect the low rates it offers to the customer.

Canada counts as a cryptocurrency mining country

The province of Quebec was said to have had electricity excess mid last year equivalent to 100 terawatt hours over 10 years, and is know to offer one of the lowest electricity rates in North America.

It is worth mentioning, Canada pioneers in cryptocurrency, making use of the lower energy costs, the high internet speed and the facilitative regulatory system.

AtoZ Markets reported last month that a town in the state of Ontario in Canada started to accept tax payments in cryptocurrencies.

The payment options were limited to Bitcoin payment for property taxes, in a testing period of one year.

Earlier last year, Canada was said to have issued a draft on regulating the cryptocurrency.

The new regulations at the time aimed to address a “number of deficiencies” that the Financial Action Task Force (FATF) set out after their evaluation in 2015-16. The deficiencies were spotted while evaluating the Anti-Money Laundering and Anti-Terrorist Financing Regime (AML/ATF) system structure in Canada.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.