Marathon Digital, a company involved in Bitcoin mining, recently revealed that the US SEC had issued another subpoena for operating its data center in Hardin, Montana. The Bitcoin miner’s quarterly report, submitted on May 10th, stated that the company was served with a subpoena early last month regarding “transactions with related parties” during the establishment of its facility.
A Second SEC Summon
This is the second court notice Marathon has received concerning its Hardin data center. The first one was issued in Q3 2021, during which the regulator demanded that the company provide several relevant documents and communications relating to its operations.
Marathon announced on May 9th that its collaboration with digital assets infrastructure firm Zero Two is to build a sizeable immersion Bitcoin mining center in the UAE. Marathon has also revealed plans to construct a 250-megawatt Bitcoin mining complex comprising two mining pools in the same region.
Despite the mining challenges in Abu Dhabi, the company stated that its specialized immersion technology would keep the mining rigs cool and allow for successful mining operations. The latest announcement from Marathon comes months after the current US government imposed a new tax on crypto mining operations.
The proposed law requires miners to pay taxes of nearly 30% of their electricity costs when mining crypto assets. Furthermore, the Treasury cited the harmful environmental impacts of energy-intensive crypto-mining operations and the rise in energy prices for neighboring communities sharing the same power grid.
Furthermore, it cited the uncertainty and risk posed to local utilities and communities as the primary reasons for proposing the tax.
Binance Eyes UK Registration Amid US Crypto Crackdown
Binance, a leading cryptocurrency exchange, has admitted that the recent clampdown on digital currencies has made conducting business in the US difficult. As a result, the company is exploring the possibility of securing regulatory approval in the United Kingdom.
Speaking at the Crypto and Digital Assets Summit organized by Financial Times, Binance’s Chief Strategy Officer, Patrick Hillmann, remarked that the past six months have been tough for the exchange in the US.
Hillmann also noted that the actions taken by the SEC against Coinbase, one of Binance’s competitors, for purportedly violating securities regulations are an example of how the US is handling the sector. Although Hillmann acknowledged that the US regulatory landscape is “extremely puzzling,” he emphasized that Binance is fully committed to pursuing license registration in the UK and is doing “everything possible” to achieve that goal.
However, Hillmann’s recent remarks mark a shift in tone from his previous statements, where he had expressed how the current regulatory crackdown on cryptocurrencies had made it challenging for Binance to operate in the US. The exchange had previously faced issues with UK regulators due to its inability to provide crucial information regarding its business operations.
Hence, regulators questioned the exchange’s ability to comply with regulations. As a result, the UK’s Financial Conduct Authority (FCA) instructed Binance to halt all regulated activities.
Binance’s clash with UK regulators has been the subject of debate, with some industry experts arguing that UK officials have been overly cautious when regulating fintech and crypto firms.