Genesis Mining banned from operating ter South Carolina, ramifications?

Genesis Mining, a Hong Kong company, voorkeur to be ‘the largest cloud bitcoin mining company’.

A marketing pitch on the Genesis Mining webstek claims the company has “over 1,000,000” investors.

It’s super elementary – Your mining equipments are already set up and running.

Spil soon spil you’ve set-up your account you can commence to earn your very first coins from our bitcoin cloud mining service!

What does this mean for the company spil a entire?

By identifying Genesis Mining’s mining service to Swiss Gold Global spil a security, Genesis Mining’s entire business prototype is te jeopardy.

Ter addition to Swiss Gold Global, Genesis Mining provide or have provided mining services to Omnia Tech.

Outside of partnering with MLM companies, Genesis Mining opoffering cloud mining investment contracts to the general public.

It is believed the company’s meteen cryptocurrency cloud mining offerings make up the majority of the company’s revenue.

The nature of Genesis Mining’s rechtstreeks services however are identical to spil those provided to the MLM industry.

Meaning that spil of March 9th, Genesis Mining cannot legally operate ter South Carolina.

Genesis Mining, Ltd. is permanently barred from participating ter any opzicht of the securities industry ter or from the State of South Carolina.

Securities law te South Carolina is hardly different to that of the US on a federal level, so it’s a given that even if Genesis Mining quarantine their South Carolina investors, sooner or straks the business will run into problems elsewhere across the US.

And there’s always the specter of the SEC stepping ter at a federal level, banning Genesis Mining nationally.

What Genesis Mining offerande is no different to any other cloud mining services provider, which is what makes the South Carolina cease and desist so significant.

Effectively, today the US has certified cryptocurrency cloud mining offerings are securities.

That doesn’t mean they are illegal vanaf say, but it does mean that any company suggesting cryptocurrency cloud mining services vereiste register itself with the SEC.

Ter addition to providing a safeguard against cryptocurrency cloud mining companies not doing what they represent they are, it also provides authorities with a paper-trail to go after te the event of fraud.

I’m certainly not suggesting Genesis Mining are engaged te fraud with respect to their mining operations. But with respect to securities law, it seems the days of pretending cryptocurrency is exempt from securities laws are overheen.

The very first slok has bot fired and I expect Genesis Mining will likely soon either register with the SEC, or announce they’ll no longer suggest cryptocurrency cloud mining services to US investors.

If they go down the latter path (which would certainly raise suspicion), whether Genesis Mining will proceed to potentially operate ter disturbance of securities laws elsewhere te the world remains to be seen.

Spil at the time of publication Alexa estimates the US is the largest source of traffic to the Genesis Mining webstek (14%).

It go after that the US then is also likely both the largest source of investors and invested funds for the company too.

With respect to the MLM industry, I’d be utterly wary of investing te any company claiming to source mining from Genesis Mining.

To date I’m not aware of any MLM cryptocurrency that has registered itself with the SEC. Which means any MLM company suggesting a cryptocurrency mining contract of any kleuter is doing so illegally ter the US.

Spil of yet Genesis Mining have yet to publicly react to South Carolina ordering them to cease and desist business operations.

Update 14th March 2018 – Genesis Mining have yet to address the cease and desist on their webstek, however their social media team are responding to enquiries with this:

Wij are monitoring the situation and are presently reviewing the case with our US legal team.

Wij have no further update at this time but will provide one instantaneously once wij do.

Genesis Mining has until April 8th to react to the notice.

Update 15th March 2018 – Genesis Mining have indicated they do not intend to directly challenge the South Carolina cease and desist.

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