To the entire crypto community and most importantly, our customers: On Sunday evening, we received a Cease and Desist letter from the South Carolina Securities Commission. This letter requires us to immediately stop selling to customers in South Carolina because of the belief that the service we sell, computer hash power (mining), is considered a security. According to the South Carolina Securities Commission, without registering or operating under exemption, the offering of our service would be a violation of the South Carolina securities laws.
Mining is at the core of blockchain technology, which we, along with many others, believe will revolutionize the world in the years to come. Without decentralized mining, cryptocurrency could not exist. Neither could all the other potential use cases that we haven’t even discovered yet. Mining is the backbone that will make this all possible.
As the leading global cloud mining company, we have a responsibility not just to our employees or customers, but to the community as a whole. We must push the industry forward. Crypto is still in its infancy and for the industry to continue to grow, the community must view regulators as partners in our shared objective of fostering responsible innovation. It’s our duty to work alongside all regulatory bodies to ensure the appropriate application of the law to our industry and protect consumers, while also ensuring that innovation is not stifled.
As we recently announced, we’re currently sold out of our cloud mining services. When we do open mining services again, until these matter with the South Carolina Securities Commission is resolved, we will no longer offer our services to new customers from South Carolina. We continue to allow customers from South Carolina to login to our platform, but they will not be able to make any new purchases of any kind.
Along with our US and global legal teams, we will be engaged in a range of government outreach initiatives over the coming months to collaboratively determine a way forward. We firmly believe that the regulators intention is to ensure consumers are protected, and we commend them for this. Our intention is to ensure that innovation is not stifled and we and other pioneers in the industry have a clear and compliant path to operate in as the industry continues to evolve.
To our 1,000,000+ other customers outside of South Carolina, this will not impact you and we can promise one thing: Genesis Mining is here for the long term and will continue to operate as the market leader. We will keep you all updated in the days and weeks ahead.
Thank you for your continued support. We’re heading to the moon but have to expect some turbulence along the way.
– Marco Streng