A cryptocurrency mining outfit based in Texas has come to an agreement with local regulators after being ordered to cease operations in July of last year. Mintage Mining will have to pay the Texas State Securities Board a fine of $25,000.
The company will also not be permitted to continue operations, though it will not have to shut down.
Instead, they will just have to wait until they are registered as a securities dealer in Texas. Mintage Mining will also have to register the products that they were offering as securities.
The reason for this is that the products the company was offering investors, the Hash Rate Unit Investment Program (HRIP) and the Open-Ended Unit Investment Program (OEIP), are securities according to Texan financial regulators.
Both products allowed individuals to invest in a typical cryptocurrency mining scheme. An investor would put their cash into a cryptocurrency mining set up and, in return, receive a proportional share in the money that the project generates.
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Mintage Mining – not alone
As noted, the Texas State Securities Board, after investigating Mintage Mining, ordered the company to cease operations in July of last year.
In what will surely lead to an annoying series of bureaucratic procedures for the company, the Texan regulator said that HRIP and OEIP were securities but, significantly for the firm, not registered securities.
That means the firm will have to first ensure that its two products are registered with the local regulator as securities and then themselves apply to become a securities deal.
Mintage Mining is not the only cryptocurrency mining company to fall into the middle of the Texan regulator’s reticle.
In November of last year, the securities board also ordered My Crypto Mine to cease operations for the same reason that it asked Mintage Mining to stop providing its services to investors.