Arkansas recently joined other U.S. states in approving a bill to regulate Bitcoin (BTC) mining. The Arkansas Data Centers Act of 2023 has passed both the House and Senate and is presently awaiting Governor Sarah Huckabee Sanders’ ultimate sanction.
The Act aims to establish guidelines for Bitcoin processors and shield them from “discriminatory regulations” and taxes, granting them the same rights as data centers.
The authorized bill’s subchapter 5 contains several definitions that are essential to comprehend the legislation. This subchapter defines “digital asset mining” as the use of electricity to power computers in order to secure or validate a blockchain network, and “digital asset miner” as a participant in this activity.
The bill also includes definitions for concepts such as “digital asset” and “blockchain network” that pertain to digital assets.
It also covers home digital asset mining, enabling users to utilize a node at their dwelling for this purpose, subject to appropriate utility restrictions and prices. Further, the Act makes it clear that a person may operate a digital asset mining firm in an area zoned for industrial use, provided that the land has not been designated for other purposes by the local government.
To defend Bitcoin mining businesses from “discriminatory regulations” and taxes, the Act prohibits discrimination against digital asset mining businesses.
The guidelines for digital asset mining businesses stated in the Arkansas Data Centers Act of 2023 are intended to provide clarity and protection for the industry while ensuring digital asset miners operate responsibly and sustainably.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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