The state of Arkansas recently joined the ranks of other US states by passing a bill that seeks to regulate Bitcoin (BTC) mining. the arkansas Data Center Law of 2023 has passed successfully in both the House of Representatives and the Senate and is currently awaiting final approval from Governor Sarah Huckabee Sanders.
The Law seeks to establish guidelines for Bitcoin miners and protect them from “discriminatory regulations” and taxes, ensuring that they have the same rights as data centers.
What are the key guidelines for the Bitcoin mining bill?
Subchapter 5 of the approved bill describes several definitions that are important to understand the legislation. This subchapter defines “digital asset mining” as the use of electricity to power computers to protect or validate a blockchain network, and “digital asset miner” as an individual engaging in this activity.
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The bill also includes definitions for other terms related to digital assets, such as “digital asset” and “blockchain network.” Furthermore, it defines “digital asset mining business” as a group of computers working at a single site that consumes more than one megawatt (1 MW) per year to generate digital assets by securing a blockchain network.
In addition, the Law outlines the requirements that digital asset miners must meet to operate in 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” in electricity. generation capacity or public service transmission network.
It also addresses home mining of digital assets, allowing individuals to use a node at their residence for this purpose, subject to applicable utility rules and fees. In addition, the Law clarifies that a person may have a digital asset mining business in an area zoned for industrial use that has not been designated by the local government for other uses.
To protect Bitcoin mining from “discriminatory regulations”
To protect Bitcoin mining companies from “discriminatory regulations and taxes,” the Law includes provisions that prohibit discrimination against digital asset mining companies. Specifically, it provides that a digital asset mining business may operate in the state if it complies with state law on business guidelines and tax policies, any operations and safety ordinances, and state and federal employment laws.
This will help ensure that Bitcoin mining companies are not subject to regulations or taxes that could hamper the growth or development of this important sector of the nascent crypto industry, at least in the state of Arkansas.
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In general, the guidelines for digital asset mining companies outlined in the Arkansas Data Center Act of 2023 are designed to provide clarity and protection for the industry, while ensuring that digital asset miners operate responsibly. and sustainable.
As of this writing, Bitcoin’s trading range is holding steady at $28,200, seeing a minor rise of 1% in the last 24 hours.
BTC is trading sideways on the 1-day chart. Source: BTCUSDT on TradingView.com
Featured Image from Unsplash, Chart from TradingView.com
