Bit Digital Defies US Regulators, Expands Bitcoin Mining To Iceland

Key Points:

• New York-based Bitcoin mining company Bit Digital expands infrastructure in Iceland to dodge proposed U.S. mining tax amid growing regulatory pressure, placing 2,500 new mining machines there.
• Over 2/3 of Bit Digital’s mining operations are carbon-free, relying mainly on hydroelectric and geothermal power sources.
• The regulatory instability concerns a major government crackdown on crypto companies triggered by the collapse of FTX and Ripple’s battle with the US SEC over the sale of XRP.

Amid growing regulatory pressure and a proposed cryptocurrency mining tax in the United States, New York-based Bitcoin (BTC) mining company Bit Digital is expanding its infrastructure in Iceland, placing as many as 2,500 newly bought mining machines there.

The move comes as a response to current regulatory uncertainty and a broader government crackdown on digital asset companies in the US. Specifically, Bit Digital plans to announce the sending of the new Bitcoin mining computers outside the US, in the first move of its kind for this company in two years, at the Bitcoin 2023 conference in Miami, according to a report by the Wall Street Journal on May 18.

As Samir Tabar, chief executive of Bit Digital, explained, the company has decided to look at different jurisdictions due to instability. In the past, the machines have come to the United States, but now the company needs to take a serious look at different options. The US Treasury Department is considering taxing cryptocurrency mining firms 30% of their costs of electricity, arguing that miners raise the electricity costs on shared grids and have a negative impact on the environment due to the high power demand. However, Tabar highlighted that more than two-thirds of his company’s crypto mining operations were carbon-free, as well as that the announced Iceland operation would rely mainly on hydroelectric and geothermal power sources.

The regulatory instability concerns a major government crackdown on companies in the crypto industry triggered by the collapse of the crypto trading platform FTX. Recently, the US Securities and Exchange Commission (SEC) itself has openly stated it was under no obligation to provide clarity. Meanwhile, the regulator is battling Ripple in court, claiming the blockchain company had illegally sold the XRP token, which the SEC views as a security. However, controversial documents reveal that former SEC Division Director William Hinman had earlier said Ethereum (ETH) was not a security, despite SEC boss Gary Gensler stating that all cryptos except Bitcoin are securities.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Annie

Coincu News