In what has been one of the first instances where a blockchain company has fought against regulations and has actually emerged victorious, the cease and desist order filed against Genesis Mining by the South Carolina Securities Division back in March has now been revoked, which means it will shortly get back to its customers in the US.
Genesis Mining is one of the largest cloud mining services in the world. It is based in Iceland and is also reportedly one of the largest consumers of their electricity. The company was founded in 2013.
COO, CCO and general counsel at Genesis, Shah Hafizi, released a statement expressing joy as he announced the dismissal of the March 9 order against Genesis Mining. He also went ahead to profess that one of their company’s most basic principles is transparency.
He maintains that the company had worked very closely with South Carolina officials over the months since the order was issued, in order to “educate” them and provide them with a “practitioner’s perspective” so as to allow them to understand how important all their practices and technologies really are.
When the cease and desist was first sent out, the mining contracts residents had purchased from Genesis were considered securities. Swiss Gold Global (which also appears in the cease and desist) was reportedly working as a broker-dealer for them. However, the company wasn’t registered in South Carolina, and so wasn’t permitted to sell securities to the residents, according to representatives.
Consumers could buy certain quantities of computing power over a span of time to be hosted by other external platforms. According to the Commission Office, this is what investment securities means. Therefore, both Genesis and Swiss Gold Global were banned from operating within the state, and we’re also banned from future business in securities within the state as well.
Deputy securities commissioner Tracy Meyers stated that:
“The Securities Division of the Office of the Attorney General of the State of South Carolina, after receiving information regarding matters detailed in the Administrative Order to Cease and Desist issued … upon due consideration of such information, finds good cause has been shown to vacate the [order].”