Bitcoin mining company BTC Guild has announced to closedown its operations in the wake of BitLicense, the state’s official Bitcoin regulatory framework.
In its final notice on BitcoinTalk.org, owner Eleuthria admitted that the said framework has enough “gray area” to threat the functioning of their mining pool, saying that they cannot bear the expense of defending the company at this moment.
“The fact that BTC Guild is not in New York does not matter, since it would be doing business with New York residents while they are physically in New York,” explained Eleuthria. “This fact makes it possible for New York to attempt to claim jurisdiction to enforce regulations. Whether or not BTC Guild could win in defense of such an attempt is irrelevant, since the cost of defending the pool would be greater than any income the pool is expected to generate going forward.”
Risk vs Recovery
As it is known, the negative trend in the Bitcoin value has deeply impacted the infrastructures of many Bitcoin mining businesses — ZeusHash, Cex.io, CoinTerra, etc. — in past. Their inability to cope with costs of equipment, electricity and rent has somewhat