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New York to impose tax on Bitcoin Mining

New York state is which has previously shown an aversion on cryptocurrency trading has recently tied up some really tough deals with the bitcoin mining companies. The authorities declared that the electricity resources invested in Bitcoin mining are soon going to be brought under taxation.

Also read : What is mining?

This was done in wake of cryptominers seeking to take advantage of the state’s low-cost hydroelectric power. Hence, the New York Public Service Commission on Thursday cleared the New York Municipal Power Agency to raise electricity bills for the same cryptominers. The Municipal authorities also shared that the cryptominers utilize as much as 1/3rd of the utility demand.

Surprisingly, last month, Coinmint had made a $165 million deal with the town of Massena in Upper New York State to take over a shutdown ore smelter and also promised to bring around 150 jobs to the the people of Massena and to the people residing in the towns of Upper New York where the economies have been in steady decline due to the shut down of large end manufacturing, rendering most people jobless.

The deal also stated the low cost power provision. But now, Bloomberg Tech has reported that the New York Municipal authorities will raise the prices of electricity resources for crypto miners which apparently isn’t a good news for the Coinmint folks.

 Commission Chair John Rhodes said,

“If we hadn’t acted, existing residential and commercial customers in upstate communities served by a municipal power authority would see sharp increases in their utility bills.”

In USA, New York and Washington are the two states where ICO’s are declared illegal.

With this news coming, it is going to get worse for the miners for whom the primary resource for their business will shoot in prices.

KryptoMoney.com publishes latest news and updates about Bitcoin, Blockchain Technology ,Cryptocurrencies and upcoming ICO’s.

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