Mining contracts are securitiesMarch 12, 2018
The Securities Department of North Carolina forces Genesis Mining to stop offering contracts for mining activities.
The Securities Department reports that such contracts for the production of crypto-currencies are investment contracts and, therefore, securities. Therefore, Genesis Mining must register with the Securities and Exchange Commission of the United States of America (SEC).
Regulators say that mining contracts meet the requirements, as investments are combined into a single enterprise with a profit expectation, primarily dependent on the efforts of Genesis Mining.
Genesis Mining is a crypto-currency pool that allows anyone to purchase hash power for further profit.
Depending on the complexity of the decision blocks, the purchase can be very risky, since the equipment can become obsolete in the shortest possible time.
The Securities Department is likely to want to expand the 1933 Securities Act so that it also applies to contracts like investments in a single entity rather than individual purchase or lease of hash resources.
Earlier we reported that US crypto-exchange exchanges are required to register in SEC.
Author: Andrey, analyst Freedman Club Crytpo News
Image from Fotolia
Source: Read Full Article