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Massena City Council Continues Cryptocurrency Regulation Review | Business
MASSENA — The City Council will take another month to review its proposed cryptocurrency mining regulation, following a review by the St. Lawrence County Planning Board.
“We still have a little bit more time with the moratorium. I would suggest holding off for another month,” City Attorney Eric J. Gustafson told council members.
The latest moratorium, one of many established, is in force until September 30th.
After much debate, members of the St. Lawrence County Planning Board voted to conditionally approve the regulation with four recommendations:
• Delete the word from Section 4.1 only. b. to eliminate confusion about whether shipping containers can be used as a containment structure;
• Add the phrase Review of the Plan to Par. 5.1 or eliminate the reference to article XIII of the Massena Municipal Code (Revision of the Plan);
• Clarify whether and how the City intends to exempt existing expansions for cryptocurrency mining operations in order to prevent perpetual expansions that would not be subject to review;
• Remove the reference requiring cryptocurrency mining operations using shipping containers not within a building to be subject to this local law as such use is prohibited under Section 4.1.
They also offered three non-binding recommendations:
• The city is considering creating a local cryptocurrency law that would specify standards based on the size of operations; the proposed law could apply to smaller-scale operations and could be enacted now, while additional regulations for larger projects could be developed and added in the future;
• Define the shipping container;
• For easier reference, layout the local law.
“The St. Lawrence County Planning Board came back with recommendations. You will receive copies of those recommendations. I would imagine that, considering the amount of people who have spoken about this in the county, there were only a few minor things that they recommended,” Town Supervisor Susan J. Bellor told Town Council members.
Gustafson had attended the planning committee meeting and heard the recommendations, “some of which I thought were helpful and some of which I didn’t like so much.”
“Let’s see what we can do with the language. I didn’t necessarily agree with their plans, but I thought maybe there’s a way to make the law a little more streamlined and effective,” he said. “I think there’s some opportunity to make some improvements, and we’re working on that right now.”
Bellor noted that one of the county’s recommendations was for smaller units versus larger ones.
“I think this is going to create a lot of unnecessary confusion,” Gustafson said. “I didn’t like that particular resolution at all. But there are some elements that were particularly important to the city and some elements that I think can be covered by other laws that are out there. So, I think there’s an opportunity for us to take the draft regulations and simplify them a little so that we have something coherent and defensible.”
The city worked with North Country Colocation Services to address the company’s concerns, which largely involve a planned expansion, and to address concerns raised by board members about other companies operating unsightly and noisy businesses.
“We support the City of Massena’s efforts to adopt cryptocurrency mining regulations that address the concerns of Massena residents involving small cryptocurrency mining operators who cause visual and audible disturbances and who may not follow applicable safety rules and regulations, said CEO David Fogel.
To the contrary, he said: “NCCS is a large company, employing nearly 100 workers and operating in an industrial area with mining operations that present none of these same concerns. Our operations take place within buildings away from residential areas and are operated in a safe and fully compliant manner.”
He said they look forward to “continuing to thrive and grow in Massena and supporting the community through more jobs, taxes and philanthropic support.”