Town of Massena extends cryptocurrency mining moratorium | Business

With several employees in attendance for the second consecutive month, David Fogel outlined his concerns about the wording in a proposed cryptocurrency mining regulation that could impact the company’s $90 million to $100 million expansion plans. He had shared similar concerns the previous month.

He told the board in March that the proposed regulation acknowledges that the existing operation is grandfathered in, but it does not cover any expansion.

“The problem is the wording to maybe five words, ‘but any expansion thereof shall be subject to these regulations.’ … That’s all we’re asking to be resolved. We’re asking the council to provide clarity tonight on these regulations, to make slight amendments … to make it clear it does not apply to us,”

During the board’s April meeting, Fogel thanked them for the “conscientious, open-minded, attentiveness to our concerns and the concerns of other members of the public regarding the regulations that are being considered.”

“I want to thank everyone for listening to our concerns, asking good questions, being concerned as well and attentive to the fact that our employees, a bunch of whom are here tonight, about their concerns because this could have real implications for them, and not only for our employees, but for the overall economic impact our business has on the community as a significant taxpayer and a significant contributor overall,” he said.

However, Fogel reiterated his main concern with the proposed regulation — that it reads, as a cryptocurrency mining operation, extra requirements would be imposed on them if they expanded. But, they would not apply to other types of operations such as Alcoa if that company expanded.

“As you think about these regulations, I ask you to consider the original purpose for the regulations,” he said.

He said that was because of concerns about cryptocurrency mining operations that were unsightly, noisy, and “not necessarily following the code.”

However, he said, NCCS is located in an area zoned as industrial and all of its operations are within buildings, meaning there are no unsightly containers and noise is addressed.

“Therefore, the containers that we use are not visible and any noise that comes from them is not able to be heard,” Fogel said.

In addition he said, they follow all fire and OSHA (Occupational Safety and Health Administration) regulations.

He said they were not asking for any special treatment regarding construction, noting that they would follow all the proper channels if they embarked on a new construction project.

“We are not asking for a blanket exemption. We just want to be treated like everyone else,” Fogel said. “Why is that important? We’re in 70-year-old buildings that are in extensive constant need of repair. We’re constantly fixing the roof and other parts of the building. We’re happy to do it. But, at some point we’re going to need to operate in some capacity in a new building.”

At this point, however, they were concerned about how the wording in the proposed regulation could impact their expansion plans at a time when they need to keep up with others in the industry.

“It’s critical for our business to expand. That expansion is not just a nice to have, but it’s actually a necessity for our business to survive long term. That goes to the nature of the crypto industry where we operate,” he said.

Investors were a critical part of the expansion plans, and Fogel said they were getting close to their goal.

“We have made a lot of progress. We are very, very close. But, it’s a matter of weeks away and not months away now. So, I’ve reached the point where we really need clarity on this issue so that we can communicate to our investors that these regulations won’t apply to our business for our expansion,” he said.

Board members approved extending the moratorium until Sept. 30 while they continue to finalize the regulations.

“That could change at any time,” Town Supevisor Susan J. Bellor said.