Crypto Mining Faces Permanent Ban in British Columbia

British Columbia is set to permanently ban new cryptocurrency mining operations from connecting to its electricity grid.

The province announced this move as part of a broader legislative initiative aimed at managing unprecedented electricity demand and ensuring power availability for industries generating more local economic value.

This ban will prohibit new BC Hydro connections for crypto miners starting fall 2025.

The government said this step will protect power supplies for sectors that create jobs and public revenue, while keeping the electricity grid reliable and clean.

Power Prioritized for Economic Growth

The government’s new regulations also include limits on electricity available to artificial intelligence data centers and data hubs, which will need to compete for power allocation through a bidding process set to begin in January 2026.

This marks a shift from the current first-come, first-served model to a system prioritizing traditional natural resource industries and manufacturing projects.

Charlotte Mitha, president and CEO of BC Hydro, said the province is witnessing unprecedented power demand from emerging and traditional industries.

She stated that the new strategy empowers BC Hydro to responsibly manage this growth, ensuring energy remains affordable and the grid stable.

“BC Hydro is focused on supporting industries that drive sustainable economic growth and community benefits,” Mitha said, emphasizing the province’s commitment to clean electricity.

Crypto Mining’s Energy Impact and Industry Response

Cryptocurrency mining operations consume large amounts of electricity and have faced criticism for their limited contribution to local employment.

British Columbia initially imposed a temporary moratorium on new crypto mining grid connections in late 2022, extended in 2024, before making the ban permanent with the new legislation.

While existing crypto miners currently connected to BC Hydro will continue operations under existing agreements, no new projects will be approved, effectively halting the sector's expansion in British Columbia.

Despite the ban, some advocates argue that Bitcoin mining can align with climate goals and efficient energy use, calling the restrictions misguided.

However, government officials emphasize the need to balance power supply demands fairly among all sectors.

This move aligns British Columbia with other regions like parts of the United States, Kazakhstan, and China, which have imposed similar restrictions amid rising energy consumption concerns.

Ensuring a Sustainable Energy Future

The British Columbia government highlighted its strategy would stimulate the economy by focusing on sectors such as mining, natural gas, LNG, and emerging industries like AI, all relying on reliable and clean power.

This approach aims to preserve the province’s substantial hydroelectric resources for these higher-value industries.

A provincial spokesperson noted, “The success of major projects depends on access to affordable, clean electricity, and this legislation ensures power is allocated to industries that contribute most significantly to our economy and communities.”