Bitcoin Mining Giant Bitmain May Be Developing Operations In The US

Francisco Memoria
  • Bitcoin mining giant Bitmain's co-founder is listed as the "governing person" of a company setting up a bitcoin mining venture in the US
  • The company setting up the operations, Ant Creek, may start leasing land in Washington in early 2019
  • Bitmain hasn't commented on its supposed involvement with Ant Creek.

Bitmain, a Chinese bitcoin mining giant that currently dominates the ASIC chip production industry, may be setting up new operations in the US. According to available data that links the company’s co-founder to a new company, which is said to be negotiating a land-use agreement in America.

According to the Union Bulletin, a company called Ant Creek is trying to build mining facilities in the state of Washington as it is currently negotiating a land-use agreement with Port of Walla Walla, a city in the state. Under the terms of the agreement, Ant Creek would lease the land from early 2019, and would have the option to buy up to 40 acres.

The project, according to Port officials, can bring the city between $7 and $10 million in private investments, and create between 15 and 20 new jobs related to the bitcoin mining operation. Port Executive Director Patrick Reay was quoted as saying that his agency’s been working with Ant Creek for six months.

He noted that his purpose was to “generate assessed value and create jobs.” The Union Bulletin’s report adds:

“[Reay] said the lease — priced at $4,166.67 per month plus $535 in state leasehold tax — provides time for due diligence, including for Antcreek to work with Walla Walla County Community Development(…)”

Union Bulletin

Notably, the cryptocurrency community noticed that Ant Creek is seemingly owned by Bitmain co-founder Jihan Wu, who according to companies-number.com is listed as the company’s sole “governing person.”

Bitmain, who last year reportedly rivaled GPU maker Nvidia in profits, is among the Chinese cryptocurrency miners attempting to set up operations abroad, given the country’s crackdown on cryptocurrencies that even saw major Chinese websites remove cryptocurrency-related ads.

The Pacific Northwest, in which Port Walla Walla is located, is suitable for miners thanks to the availability of relatively inexpensive resources in the area. As recently covered Quebec, another attractive region, revealed it isn’t interested in accepting bitcoin mining operations without any “added value.”

At press time, Bitmain hasn’t commented on the rumors regarding its supposed involvement with Ant Creek.

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Two Brazilian Crypto Exchanges Close Following Change in Tax Laws

  • Two Brazilian exchanges have been forced to close in the face of strict new regulations.
  • Exchanges are required to keep track of all transactions made with cryptocurrency or pay fines. 

Two Brazilian cryptocurrency exchanges have been forced to shut down following the enactment of new tax laws. 

Following reports of rampant cryptocurrency-related fraud in 2019, Brazilian politicians have created and enforced new tax regulations for the industry of cryptocurrency. 

According to a report by Bitcoin.com, exchanges Acesso and Latoex are two of the first casualties of the increased regulation. Both exchanges have decided to end operation, rather than pay the hefty fines and comply with strict regulation in the face of shrinking trading volume. 

Pedro Nunes, co-founder of Acesso Bitcoin, told Portal do Bitcoin, 

After the Federal Revenue Service introduced these rules we noticed a significant decrease in the traded volume. We also feel that the market has cooled off for smaller exchanges.

The new regulations, implemented in August 2019, require traders and brokerages to report all transactions involving cryptocurrencies. Failure to comply results in penalties ranging from 500 BRD to 1500 BRD ($120 - $360). 

Exchanges say that compliance with the new regulation requires expensive investment into new resources, which has been untenable for smaller and less profitable organizations.

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