All About BTC, LTC, ETH mining as well as other alternative crypto currencies
Some more Bitcoin and crypto currency oriented businesses have announced that they will not be applying for BitLicense and thus will stop offering their services to residents of the state of New York. These companies include the Bitcoin cloud mining service Genesis Mining:
Genesis Mining will not be able to comply with the regulations set forth by the proposed BitLicense and as such, we will no longer be able to accept customers from the state of New York. All current customers will be able to continue their services, but going forward, no one with an IP address from the state of New York will be able to purchase hashpower contracts with us.
Then there is also the LocalBitcoins, a service that connects people willing to sell and buy Bitcoins all over the world. Interestingly enough at the same time one of the biggest online Bitcoin wallet providers and payment processor service Coinbase has announced they will be applying for BitLicense. Applying for a BitLicense has two sides, one regarding the process itself that seems to be long and costly endeavor for the companies, and the other is the concern regarding the customer’s privacy and how it will be affected after a company complies with the BitLicense regulations.
New York’s controversial BitLicense has driven away two more Bitcoin exchanges away from NY, these are Kraken and Bitfinex who are not going to be applying for the BitLicense at this time. Both exchanges will stop servicing clients living in the state of New York in order to avoid complications due to the financial regulation change. Another large Bitcoin exchange, namely BitStamp, apparently has plans for applying for a BitLicense in order to be able to continue to operate in New York. The biggest concerns that people have with the BitLicense regulations is regarding their privacy and since Bitcoin and crypto currencies are more privacy oriented it is no wonder that crypto currency businesses decide to get out of NY instead of applying for BitLicense.
It seems that New York’s BitLicense regulations that recently have been finalized are already “encouraging” smaller Bitcoin businesses to either move away or stop working with users from new York. Just a few days ago we’ve had an announcement that the BTC Guild pool is closing down on June 30th citing the BitLicense regulations as one of the reasons for that decision. It seems however that the Bitcoin mining pool is not the only Bitcoin business that is taking into account these regulations as the Eobot Cloud Mining Service has also apparently taken the regulations seriously and has announced that it will stop working with users from the State of New York. Below is a quote of the official announcement:
Eobot will cease operations in the State of New York as of July 1, 2015.
To All Customers: If you are residing in and/or accessing Eobot within the State of New York, US, please withdraw all coins and cease all mining with Eobot as of July 1, 2015, as we are ceasing all Eobot mining connections from within New York at that time.
We regret that we must cease Eobot business within New York State, however the new BitLicense requirements in this state place compliance and cost burdens upon Eobot that we believe are excessive.
The Eobot Bitcoin Cloud Mining Service has been available for quite some time, probably among the oldest ones that are still operating. However we have not used it as some of its offers are not among the most profitable ones and have always seemed bit strange to us, but apparently it has large user base according to their statistics (over 224 thousand users). The service also has some sort of a downloadable miner, along with minerd and cgminer, but if you already have some mining hardware there are probably better and more profitable ways to utilize it. Still the service might be worth checking out, so we are going to.
Back on the BitLicense regulations, it seems that instead of helping Bitcoin-related businesses they will end up causing trouble for some smaller businesses that can prefer to stop operating in NY. Another, even worse outcome, could be for smaller businesses to go “in the dark” in order to avoid complying with the required regulations and continue to operate in NY without complying with the BitLicense. It will be interesting to see what will be the reaction of larger Bitcoin businesses to the BitLicense regulations, but we expect that some of these will also decide to stop operating in the State of New York…