Arkansas recently joined the ranks of other US states by passing a bill that seeks to regulate Bitcoin (BTC) mining.Arkansas data center law The 2023 bill passed both the House and Senate and is now awaiting final approval from Gov. Sarah Huckabee Sanders.
The law aims to establish guidelines for Bitcoin miners, protect them from “discriminatory regulations” and taxes, and ensure the same rights as data centers.
What are the key guidelines of the Bitcoin mining bill?
Chapter 5 of the approved bill outlines some definitions important to understanding the law. In this subchapter, we define “digital asset mining” as using electricity to power computers to secure or verify blockchain networks, and “digital asset miners” as individuals who engage in this activity. doing.
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The bill also includes definitions of other terms related to digital assets, such as “digital assets” and “blockchain networks.” It further defines a “digital asset mining business” as a group of computers operating at a single site that consume more than one megawatt (1 MW) annually to generate digital assets by securing a blockchain network. increase.
In addition, the law requires digital asset miners to operate within the state, including compliance with state and federal laws, payment of applicable taxes and government fees, and operating in a manner that does not cause “stress” to electricity. It outlines the requirements that must be met. A utility’s power generation capacity or transmission network.
It also supports home digital asset mining, allowing individuals to use their home nodes for this purpose, subject to applicable utility rules and rates. In addition, the law clarifies that digital asset mining operations can be conducted in areas zoned for industrial use that have not been designated for other uses by local governments.
To protect bitcoin mining from “discriminatory regulation”
To protect bitcoin mining businesses from “discriminatory regulations” and taxes, the law includes provisions prohibiting discrimination against digital asset mining businesses. Specifically, it says digital asset mining operations can operate in the state if they comply with business guidelines and state tax laws, operational and safety ordinances, and state and federal employment laws.
This will ensure that bitcoin mining operations, at least in Arkansas, are not subject to regulations and taxes that could hinder the growth and development of this important sector of the nascent crypto industry.
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Overall, the guidelines for digital asset mining businesses outlined in the Arkansas Data Center Act of 2023 provide clarity and protection to the industry while ensuring digital asset miners operate in a responsible and sustainable manner. It is designed to
As of this writing, Bitcoin’s trading range is stable at $28,200, up just 1% over the past 24 hours.
BTC is trading sideways on the 1-day chart. Source: BTCUSDT on TradingView.com
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