Mining company Bit Digital expands into Iceland amid US regulatory pressure

With mounting regulatory pressures, and a proposed cryptocurrency mining tax in the United States, a bitcoin mining company Bit Digital Headquartered in New York, it expanded its infrastructure in Iceland, placing as many as 2,500 newly purchased miners there.

Also read: “The United States” is cooperating with “Ukraine” to track down Russians evading sanctions

and plans Bit Digitalto announce the dispatch of mining rigs Bitcoin Bitcoin The new company outside the United States, in the first step of its kind for this company in two years, at a conference Bitcoin Bitcoin 2023 In Miami, according to a newspaper report Wall Street Journal on May 18.

For his part, the CEO of the company confirmed Bit Digital, Samir TabarThe main reason behind this decision is the current regulatory uncertainty and broader government crackdown on digital asset firms in the US, he said:

“What we used to do in the past, is the machines would come to the US, but now instead of doing that, we have to look at different countries because of the instability, and we have to take that very seriously.”

Mining firm Bit Digital expands to Iceland amid US regulatory pressure

organizational uncertainty

The US Treasury Department has proposed taxing cryptocurrency mining companies at 30% of their electricity costs, arguing that miners raise electricity costs on shared grids, as well as negatively impact the environment, due to higher energy demand.

except if Tabar He explained that more than two-thirds of his company’s crypto-mining operations are carbon-neutral, in addition to the announced Iceland operation, which will rely primarily on hydroelectric and geothermal energy sources.

As for regulatory instability, the issue is linked to a major government crackdown on cryptocurrency industry companies, due to the collapse of the cryptocurrency trading platform. FTX FTXin addition to the permit US Securities and Exchange Commission (SEC). Recently and publicly, it is not obligated to provide explanations.

Meanwhile, the struggle continues between the SEC, andRipple In court, where the body claims that Inc blockchain Token has been sold XRP illegally, which the Authority considers a security.

Also read: New York: Encryption Law Proposed One of the Strongest and Most Comprehensive Regulations in the United States

The controversial documents also revealed that a former director of the Securities and Exchange Commission named William Hinmanhad said earlier that Ethereum (ETH) It is not a security, despite the statement of the Chairman of the Securities and Exchange Commission Gary Genslerthat all cryptocurrencies except Bitcoin They are securities.

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