Genesis Mining, a provider of managed cloud mining, announced that it is resuming operations in the United States after South Carolina regulators withdrew a cease and desist order against the firm. Contracts serving U.S. residents have been disabled for five months up until now.
The cease and desist originated from the South Carolina Securities Commission on March 9, 2018, which prompted Genesis Mining to withdraw services from the entire United States. The commission decided to withdraw the order this week. Genesis Mining has been cooperative with regulators.
The announcement from the Commission gave no details behind why they decided to withdraw the C&D. The Commission sent the original order “because of the belief that the service [Genesis Mining] offers, computer hash power (mining), is considered a security.”
This move is in line with the general trend of regulators warming up to cryptocurrencies. As CCN reported, the SEC declared that both bitcoin (BTC) and ethereum (ETH) are not securities, which means that they do not have to conform to strict securities regulations.
More recently, the Nasdaq held a closed-door meeting with industry leaders to legitimize digital currencies. Announced today, the Intercontinental Exchange (ICE) is launching physically-settled bitcoin futures product, further legitimizing the asset in traditional finance.
There are many upsides to cloud mining, as opposed to hosting your own operation. The initial cost to buy mining equipment is removed. You do not have to find a place to store the mining equipment, where electricity is cheap. Noise can also be an issue, especially for ASIC miners, so many people cannot just set one up in their house.
Genesis Mining is a relatively mature company in the industry and has been in business for over four years. It has gained notoriety for having high customer service and up-time. As one of the largest cloud mining providers in the space, Genesis also benefits in terms of the latest technology and strong engineers.
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Last modified: May 20, 2020 6:09 PM