Bitrabo Editorial
Binance, a cryptocurrency exchange, has recently announced the launch of a new batch of subscription-based cloud mining services for Bitcoin. This comes despite the recent charges filed by the U.S. Securities and Exchange Commission (SEC) against Binance. The cloud mining services, which were first introduced in November 2022, allow users to earn mining rewards from Binance Pool without the need for mining equipment.
Subscription for BTC Cloud Mining Service
According to Binance’s blog post, the subscription for the new batch of cloud mining services began on June 8 and will end on June 15, 2023. The subscription follows a first-come-first-served model, and users must have a verified account to participate. By subscribing to the cloud mining products, users can purchase hash rates and start earning mining rewards in their funding wallets from June 15. This is beneficial for retail users who find it expensive to purchase and maintain Bitcoin mining equipment, as well as consume a significant amount of electricity.
Binance created its mining pool to address the issue of solo miners finding Bitcoin mining less profitable. By allowing miners to subscribe to the pool and cooperate in mining blocks, Binance aims to improve miners’ income. The cloud mining services were first launched on November 22, 2022. However, the services faced power outages due to a severe winter storm in North America in December 2022. To compensate for the outage, Binance extended the cloud mining subscription by three days.
Binance’s Regulatory Challenges
Binance’s launch of new cloud mining services comes at a time of increased regulatory scrutiny by the U.S. regulators. On June 5, the SEC filed a lawsuit against Binance, accusing the exchange of offering unregistered securities. In response, the SEC issued a temporary restraining and show cause order to Binance, demanding asset freeze and explanation from the exchange. Binance, Binance US, BAM Management Trading, and CEO Changpeng Zhao received a summons to appear before the Columbia District Court.
Under regulatory pressure, Binance has removed over 100 advanced trading pairs, including BCH/BTC, DOT/BTC, and ATOM/BTC. These removals were announced on June 7, 2023. Binance.US also removed BTC and BUSD advanced trading pairs. However, the exchange assured users that their assets are safe on the platform.
Another recent announcement suggests that Binance has removed more trading pairs on June 15. Although the reason behind these removals was not specified, the exchange assured users of the safekeeping of their assets on the platform.
Featured image from Pixabay and chart from TradingView.com