Binance Launches Bitcoin Mining Cloud Service Despite SEC Regulatory Pressure

Binance continues to forge ahead, launching a new subscription-based cloud-mining product strictly for Bitcoin. Cloud mining is a cryptocurrency mining process that uses a remote data center and shares processing power. 

It implies that users can mine crypto without owning or managing hardware which is usually expensive. The Binance cloud mining service begins today, June 15, 2023, creating an avenue for users without mining equipment to earn.

Binance Exchange launched this service amid regulatory pressure from the U.S. Security and Exchange Commission (SEC). 

Binance Cloud Mining Service Details 

The largest crypto exchange in the world announced the launch of its subscription-based mining model.

Users will purchase hashrate to partake in this mining service. Hashrate is the computing power needed to confirm and approve Bitcoin transactions on a blockchain. 

Binance currently offers 1 Terahash per second (Th/s) at $10.7280. This covers the hashrate cost ($1.17) and electricity cost ($9.558) for users.

A high hashrate boost the chances of higher income in Bitcoin. This BTV mining subscription is active for 6 months (180 days). For each TH/s purchased, users will receive approximately 0.0004338 BTC during this period.

However, cloud mining services are currently unavailable for crypto investors in the United States. This restriction is likely a result of the ongoing legal battle between the US SEC and Binance.US.

Other Notable Developments Around World’s Largest Crypto Exchange

Binance US Hires Former SEC Enforcement Lawyer

Notably, according to a June 12 Bloomberg report, Binance.US hired former SEC enforcement co-director George Canellos. Canellos is under the law firm Milbank LLP and left the SEC in 2014 after several years of service.

Also, former SEC internet enforcement officer John Reed Stark stated on Twitter that Binance is preparing for criminal prosecution. According to Stark, George Canellos is an all-star lawyer, and Binance is teaming up with the best defense attorneys in the world. However, he expressed his doubts that Binance will successfully escape unhurt from the legal battle with the US SEC.

Binance Applies To Deregister In Cyprus

Also, world’s largest crypto exchange seems ready to exit Cyprus ceasing all operations. According to a report, the Cyprus Security and Exchange Commission labeled Binance Cyprus Limited ” under examination for application for deregistration.” 

In October, Binance received class 3 registration in Cyprus as a Crypto Asset Services Provider (CASP). Based on Reuters reports, the allegation is that Binance never launched its services in Cyprus.

In a statement, world’s largest crytpo exchange claimed that the exchange is working hard for their businesses to comply with MiCA ( Markets in Crypto-Assets) after its implementation in 18 months.

According to the statement, the decision to recall their efforts in Cyprus is to focus efforts on fewer regulated entities in the European Union, especially the larger registered markets. Binance continues to stay afloat despite the recent crackdown by the US SEC on the exchange.