It was only a matter of time until the BitLicense regulation started claiming more victims in the Bitcoin mining industry. Not only are individual miners under the scrutiny of becoming money transmitters, but mining pools and even cloud mining providers could be affected as well. Genesis Mining, one of the very few legitimate cloud mining companies, will no longer accept customers from the New York state area.
All But Destroying Bitcoin Growth In NY State
Applying for a BitLicense is a long, tedious, invasive and costly matter, and most Bitcoin companies are taking a stance in terms of forcing regulators to tone down the requirements sooner rather than later. While that process may take months, or even years, to have an effect, the exodus of Bitcoin companies in the New York state area is growing longer every day.
Even Bitcoin, cloud mining services, are not being spared, as they would also be forced to apply for a BitLicense because of their “money transmitter activities”. The generation and distribution of Bitcoin for monetary gain is labelled as money transmissions under this new regulatory framework and forces all mining companies and pools to apply