Cryptocurrency mining in Arkansas could soon see stricter regulations placed on it from rules set by the Arkansas Oil and Gas Commission.
Dustin Curtis, vice president of Interstate Holdings, which owns a crypto mine in Lonoke County, said the new regulations could add more “red tape” for new projects.
The mine in Lonoke County has been in operation for about a month and no complaints from nearby residents have been received, he said.
The site faced backlash from residents and Cabot city officials when it was being built due to crypto mines known for being loud, using a lot of power and posing security risks.
A cease-and-desist order was issued last fall, halting the construction on the mine, but was lifted in December by Lonoke County Judge Doug Erwin. Steve Landers Jr., who owns Interstate Holdings, told Arkansas Money & Politics in December that the order was lifted after showing the judge that all FEMA requirements had been met.
An Arkansas Senate bill was filed late last year looking to ban crypto mines within 30 miles of any military installation. It was filed in response to Interstate Holdings’ mine, which is near the Little Rock Air Force Base. In January, the bill failed to advance out of the Arkansas House of Representatives committee.
Curtis said both of these issues resulted in a lot of lost revenue for the mine, which would have been running sooner had they not received the cease and desist or had to await the outcome of the bill.
Now, the new rules could slow down the creation of additional mines.
Arkansas State Sen. Joshua Bryant (R-Rogers) is working to insert a clause that would omit crypto mines that are already running from the new regulations, Curtis said. The commission is set to meet about the issue later this week, he added.
Curtis said the Arkansas BlockChain Council had asked for rules to be set across the board because they saw a lot of companies not following best practices, but not all the suggestions they gave the commission were taken.
One part of these rules would change what is necessary to apply for a permit, including an affidavit that the company is not a prohibited foreign party-controlled business and providing a technical description and engineering specifications that show the site is fully enclosed or liquid-cooled.
It would also require the applicant to notify the local government where the site is located, all landowners within one mile of the site, as well as any other person as determined by the director and the Arkansas Division of Environmental Quality. If any party objects, then a hearing will be held in order to get the permit approved.
Curtis said if these get put into place as is, it won’t shut down the Lonoke County mine, but the five additional mines they have planned to be built this year may hit delays.
“It’s hard enough to do business these days as is without more and more hoops to jump through,” he said.
Featured photo above: Inside Interstate Holdings’ first cryptomine, located in north central Arkansas. (Photo provided)
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