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- 1 The crypto mine is now immune to any action by police.
- 2 Arkansas Act 851 was established to regulate digital asset mining operations.
A lot of Arkansans recently complained about the annoying humming noise produced by crypto mining machines in the region. It appears like the landscape is going to remain the same for now. According to Arkansas Business, a newspaper in Little Rock, crypto miner Jones Digital was granted a preliminary injunction by a DeWitt county judge.
Crypto Mine to Stay in Arkansas
The ruling means the company is now immune to any police action even if its equipment breaches the set noise limit. New restrictions imposed by regulators were breaching Arkansas Act 851 according to the lawyers representing the company. The bill was introduced during the first quarter of this year.
Moreover, The Arkansas Data Centers Act of 2023 is focused on clarifying regulations in the “digital asset mining business.” It says, “The General Assembly intends to recognize that data centers create jobs, pay taxes, and provide general economic value to local communities and this state.” It adds “And clarify the guidelines needed to protect data asset miners from discriminatory industry specific regulations and taxes.”
It also emphasizes crypto miners’ power consumption. It orders them to operate in a way that would prevent any damage to the state’s power grid. One of the algorithms used by cryptocurrencies, Proof-of-Work (PoW), renders these assets energy-intensive. They require advanced computers to solve complex mathematical problems as a part of the mining process.
Local news media reported in July that people from several Arkansas counties were rushing to pass ordinances associated with regulating crypto mining noise. Crypto miners tend to stick with remote areas for their operations. However, issues like energy consumption and noise pollution remain consistent issues.
A Republican from Malvern, Rep. Rick McLure, acknowledged the noise issue in a written statement. He wrote, “In the weeks following [the passage of the bill] there have been several reported situations of problems with noise generated by digital asset miners. Large digital asset mining operations can be a problem. They can be loud and annoying.”
In October 2023, a Television station in Little Rock and NBC affiliate, KATV, reported similar complaints were being made by the local residents. The drone arising from cooling fans can be heard as far as four or five miles away. A person residing near the facility said that “It’s just freaking loud. High-pitched fans, that’s what you hear.”
A citizen from DeWitt County said in October, “It just seems like our rights are being discriminated against and taken away in order for this one business to come in that’s not going to provide jobs, it’s not going to provide any economic benefit for our community.”
Ownership of crypto mining companies operating in Arkansas is becoming a crux of the matter. Some reports have mentioned Chinese crypto miners operating in the State. Nonetheless, there isn’t any specific report mentioning it as an issue. However, in October, Governor Sarah Huckabee Sanders asked a Chinese company to vacate the State. Although there were no mentions of it being a crypto miner.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
