Power Mining Pool (PMP), a US-based Cryptocurrency company, has received from the U. S. state of North Carolina a cease and desist. PMP is supposedly employed in the crypto-currency Mining (crypto-Mining). It turned out that the Offer of Mining Pool Shares is a violation of the securities act of the state and the society is not registered securities at all.
It should be noted that this Situation has nothing to do with crypto-Mining. The Order directs that an independent contractor, an organization, a Director, an officer, an employee or any person working for PMP, you must permanently refrain from selling securities in North Carolina, until the securities are either registered or exempt. This does not mean that it’s all about cryptocurrencies, but the securities law of the state.
The prompt also requires that the members of the company may not act as representative, the seller, or securities dealers, unless you are registered in this state. In addition, PMP-staff should ensure that it breaks no other laws of the state.
The new cease and desist order following a temporary cease and desist letter from 02. March. The company has not answered, contested or a hearing is requested; Instead, they are on 6. March went offline.
The questionable activities
North Carolina has no Problem with Crypto. The Problem was that the state considers PMP as an Online business, which is registered in any Jurisdiction, the nowhere can be physically localized. It Essentially doesn’t exist in relation to the local law, but you can still financial services.
The offered service consists of crypto currency Hardware, which is available 24/7 in operation and seven different crypto the most profitable crypto-currency currencies constantly dig.
Furthermore, the PMP offers its customers the possibility of crypto currencies Mining Pool Shares to mine. This is how it works: customers can buy Bitcoin via Fiat currencies. Then you send the Bitcoin to PMP’s Bitcoin address to create a PMP Account. Then PMP is to operate for the customers of crypto-Mining and customer in Fiat and pay the currency, depending on the value of the mined coins. Then, while the new crypto-currencies are mined, you can replace the customer the new crypto-currencies to Bitcoins, so that the investors receive profits from the participation in the commercial pool.
The Problem is the fact that Mining Pool Shares are regarded as securities and North Carolina’s Problem here is due to the fact that these were not registered locally. This leads the authorities to believe that PMP released intentionally, not facts about your mining pool shares in the offer.
The statement of the Secretary of the North Carolina State is:
The Mining Pool Shares are securities and are not registered with the Administrator … PMP released intentionally, no significant facts, if Mining Pool Shares are offered.
Image courtesy of Wikipedia Commons.