Canadian Province Bans Crypto Mining With New Energy Bill

This week, the government of British Columbia announced it will permanently ban new cryptocurrency mining connections to the province’s electricity grid to protect the power supply.

The move makes Canada’s third-largest province a non-viable location for new grid-connected mining facilities. It also signals that existing crypto miners will find it nearly impossible to expand their operations. 

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Permanent End for Grid Crypto Expansion

British Columbia is moving to make its temporary restriction on new cryptocurrency mining connections a permanent ban, according to legislation introduced this week.

The move closes the door on expanding industrial-scale crypto mining within the province. It effectively cements British Columbia as one of the first jurisdictions in North America to explicitly exclude the sector from accessing its publicly owned, clean-energy supply. 

The ban on crypto mining is not an isolated measure. Instead, it’s BC’s most far-reaching component of a new Electricity Allocation Framework designed to address unprecedented electricity demand and ensure the province’s clean energy goes toward projects that maximize economic benefit. 

The ban, however, doesn’t include all types of mining. According to the government’s press release, traditional mining will still have access to the power grid.

“Our new allocation framework will prioritize vital growth in sectors like mining, natural gas, and lowest-emission LNG, while ensuring our clean energy is directed to projects that deliver the greatest benefit to British Columbians,” said Adrian Dix, Minister of Energy and Climate Solutions.

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While the bill has not been enacted, it’s strongly poised to pass. As a result, crypto miners in the region will have to adapt. 

Miners Forced to Seek Alternatives

Any miner planning new operations or expansion in British Columbia must shift their investment and operations to other jurisdictions. However, migration is met with a patchwork of regulations across the country.

The Canadian provinces most attractive to crypto miners—those with abundant, cheap, publicly subsidized hydroelectric power—have become the most restrictive toward new connections.

Provinces like British Columbia, Quebec, Manitoba, and New Brunswick have all taken action to protect and prioritize this clean power supply.

This new reality forces the industry to adopt off-grid solutions, bypassing the provincial utility and connection rules.

Alberta stands out as a viable destination for crypto miners because its fossil fuel regions allow them to capitalize on stranded energy. Miners can consume excess natural gas that would otherwise be flared or vented.

Such a move would provide low-cost power and reduce methane emissions by converting gas into electricity. 

Miners can also pursue domestic partnerships with private electricity generators operating outside the main utility grid. The remaining option for those seeking a grid connection involves relocating from Canada to another country with available hydropower.