Binance Offers Bitcoin Mining Outside the United States Amid SEC Regulation Scrutiny

Jimmy Aki
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Binance, the world’s largest crypto trading platform by daily volume, has expanded its operations into Bitcoin mining.

This pioneering endeavor offers a cloud-based subscription service exclusively focused on mining the world’s first digital currency.

Binance Diversifies Offerings Amid Regulatory Challenges

Binance introduces its cloud services for Bitcoin mining despite the continuous regulatory scrutiny that crypto exchanges face.

The newly launched Bitcoin mining cloud services aim to allow users to participate without the need to own or manage mining hardware.

The trading platform explained that users interested in Bitcoin mining but lacking the necessary equipment can opt for Binance’s cloud mining services starting from June 15th.

Binance provides an attractive option by enabling users to buy hash rates and engage in mining.

The hash rate represents the computational power required for validating and verifying Bitcoin transactions on the blockchain.

Through cloud mining, individuals can purchase mining power from Binance and receive a portion of the rewards generated by the mining operations.

Therefore, this approach allows more accessibility, especially for those lacking technical knowledge or resources to engage in mining individually.

Binance currently offers the sale of 1 Terahash per second (Th/s) for $10.7280. The total cost is split between the hash rate, which accounts for $1.17, and the electricity expenses, which amount to $9.558.

It should, however, be noted that the higher the hash rate, the higher the possibility of earning more income from Bitcoin mining.

Binance’s BTC mining subscription service will remain active for approximately six months, equivalent to 180 days.

Within this timeframe, users will earn 0.0004338 BTC for every TH/s they purchase.

This announcement comes when the Securities and Exchange Commission (SEC) in the United States has intensified its crackdown on the crypto industry.

However, this strategic move by Binance showcases the exchange’s determination to diversify its offerings and establish a foothold in the lucrative mining sector.

Nonetheless, many exchanges are already feeling the heat of the increasing regulatory efforts by the SEC to protect investors and enforce compliance within the cryptocurrency ecosystem.

The dominance of Binance in crypto trading remains strong, with its decision to venture into the mining sector to expand its revenue streams and potentially reduce its reliance on traditional trading activities.

Navigating Regulatory Hurdles

The Binance move into Bitcoin mining cloud services may also serve as a strategic response to the regulatory challenges it faces.

The exchange aims to reduce its reliance on trading activities that have drawn regulatory scrutiny by diversifying its offerings.

However, this service launch is exclusive to crypto investors in the United States.

In light of the recent clampdown by the Securities and Exchange Commission (SEC), the company continues to reassure its global user community that Binance.com, which is operating independently, will remain unaffected by the concerns surrounding Binance.US.

It can be recalled that the SEC filed thirteen charges against Binance while alleging that the entity was operating as an unregistered exchange, broker, and clearing agency.

In response to this unprecedented development, Binance.US has strengthened its legal team by hiring the services of George Canellos, a former co-director of SEC enforcement.

He is currently associated with the international law firm Milbank LLP. However, three additional attorneys have also been hired.

Canellos had a stint of over four years in various leadership roles at the SEC before leaving in 2014.

Former SEC internet enforcement chief John Reed Stark expressed his thoughts on the alleged developments, stating on Twitter, “Binance is preparing for a criminal prosecution and continues to hire top defense attorneys from around the world.”

Following the action of the SEC, Binance.US stated on June 9th, 2023, that it would halt U.S. dollar deposits and temporarily stop fiat withdrawals by June 13th.

The exchange justified this decision by pointing out the SEC’s use of “highly forceful and intimidating strategies.”

Moreover, the perceived harsh methods of regulating cryptocurrencies by the SEC have also drawn criticism from U.S. legislators and prominent figures in the industry.

On June 12th, Representative Warren Davidson proposed a bill to restructure the commission, including a call to remove SEC chair Gary Gensler.

Binance’s decision to launch Bitcoin mining cloud services amid the SEC’s crackdown in the United States demonstrates the exchange’s commitment to diversifying its offerings and navigating the evolving regulatory landscape.

The outcome of this strategic step about navigating intricate regulatory challenges and its possible effects on Bitcoin miners and investors worldwide are yet to be revealed.

However, Binance remains resolute in establishing and maintaining supremacy in the crypto ecosystem.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.