Seeds of Wisdom RV and Economic Updates Monday Morning 11-25-24

25/11/2024

Good Morning

NEW TEXAS REGULATION: CRYPTO MINERS MUST REPORT POWER USAGE

Texas mandates crypto miners in ERCOT to report power usage, aligning mining growth with grid stability and efficiency.

Texas introduces a new rule requiring crypto miners to report electricity demand to manage power grid stability effectively.

Global trends show varying regulatory responses to crypto mining, from New York’s temporary moratorium to China’s outright ban.

In a move to better manage its power grid amid the growing popularity of cryptocurrency mining, Texas has introduced new regulations requiring crypto miners in the Electric Reliability Council of Texas (ERCOT) region to report their power demand.

Announced by the Public Utilities Commission of Texas (PUCT) Chairman Thomas Gleeson on November 21, the rule mandates Bitcoin [BTC] miners to provide detailed information about the location, ownership, and electricity demand of their operations.

This regulation aims to ensure stability and efficiency in the state’s power grid as the number of mining facilities increases.

The necessity for such regulations comes as Texas continues to attract a significant number of crypto mining operations due to its relatively low energy costs and crypto-friendly policies.

However, the surge in energy consumption by these operations has raised concerns about the potential strain on the state’s power infrastructure, especially during peak demand periods.

By having a clear picture of the energy demands from crypto mining, Texas can better prepare and adjust its grid management strategies to prevent outages and maintain reliable energy distribution.

Global regulatory trends in crypto mining
Texas is not alone in its efforts to regulate the energy use of crypto mining activities. Around the world, various jurisdictions have started implementing similar rules to address the environmental and infrastructural impacts of this burgeoning industry.

For example, New York recently passed a bill that places a temporary moratorium on certain types of cryptocurrency mining operations that use carbon-based fuel. This legislation is part of broader efforts to align the state’s crypto mining activities with its climate targets.

Similarly, countries like China have taken more drastic measures by completely banning cryptocurrency mining, citing excessive energy consumption and environmental concerns as primary reasons.

These global shifts in the regulatory landscape indicate a growing awareness and response to the complex interplay between cryptocurrency mining and regional energy systems.

The new Texas rule is part of a broader trend where regional governments are scrutinizing the environmental and infrastructural impacts of cryptocurrency mining.

While more territories evaluate and implement regulations, crypto miners are increasingly required to adapt to these changing conditions. Compliance with such regulations not only supports local infrastructure but also pushes the crypto mining industry towards more sustainable practices.

As the BTC mining industry continues to expand, the introduction of regulatory measures like those in Texas is crucial for ensuring that growth is balanced with the needs and limitations of local power grids and environmental standards.

These regulations could set precedents for how other regions manage the intersection of technology, energy consumption, and environmental responsibility in the age of cryptocurrency.

@ Newshounds News™

Source: AMBCrypto

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COINBASE EXPLORES BLOCKCHAIN PARTNERSHIP WITH KENYA’S SAFARICOM

Coinbase is reportedly exploring a partnership with Safaricom to enhance M-PESA with blockchain technology. This move aligns with Coinbase’s broader strategy of promoting crypto adoption in Africa, particularly in Kenya and Nigeria. Coinbase is also working with the Kenyan government to foster blockchain development and education.

While regulatory uncertainties have previously hindered Coinbase’s operations in Kenya, recent positive developments and partnerships with local entities like Yellowcard suggest a growing interest in cryptocurrencies and blockchain technology in the country.

@ Newshounds News™

Source: Bitcoin News

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HONG KONG’S ZA BANK IS FIRST BANK IN ASIA TO LAUNCH RETAIL CRYPTO SERVICES

Today Hong Kong digital bank Zhong An Bank (ZA Bank) unveiled a retail cryptocurrency trading service. It claims to be the first Asian bank to launch a retail service. Rather than building an exchange from scratch, like most banks, it is launching in partnership with an existing cryptocurrency exchange, HashKey Exchange

Initially the bank supports trading only in Bitcoin and Ethereum in both HKD and USD. For the first three months after activation, ZA Bank is offering 0% commission, with minimum investments of USD 70 or HKD 600.

The offering has been integrated with the main bank app. The bank cited a recent survey by the Hong Kong Association of Banks, saying it found that 70% of respondents would find it convenient to trade crypto via their banking apps.

“The rise of cryptocurrency presents investors with more diverse asset allocation opportunities,” said Calvin Ng, alternative CEO of ZA Bank. “As a bank, we prioritise security and compliance, which is why we’ve partnered with HashKey, a global-leading licensed virtual asset exchange, to meet regulatory standards and deliver bank-grade security in virtual assets trading – our key competitive advantage in the Asian market.”

ZA Bank is Hong Kong’s largest digital bank with 800,000 users as of June 2024 (Hong Kong population 7.5m). The company is owned by ZA Global, an affiliate of Zhong An, the large Chinese insurance company which was co-founded by the entrepreneurs behind some of China’s biggest technology firms – Alibaba, Tencent and Ping An insurance.

Other bank cryptocurrency services
While ZA Bank may be the first Asian bank to offer retail crypto trading, Singapore’s DBS Bank was the first to launch a crypto service almost four years ago, which it built in-house. However, the DBS Digital Exchange targets only institutional and accredited investors.

Probably the largest number of retail bank crypto services are in Latin America. Europe is catching up, especially with the enactment of the bulk of the EU’s MiCA crypto regulations at the end of this year. BBVA was one of the pioneers, starting a service in Switzerland in mid 2021, followed by the launch of Garanti BBVA Digital Assets in Turkey last year.

@ Newshounds News™