From May 1, Marathon intends to redirect all hash power to its latest, regulatory-compliant Bitcoin mining pool.
Marathon Digital Holdings, a major American mining company, has announced the launch of the first North American Bitcoin mining pool that is “completely compliant with US regulations.”
According to a March 30 announcement, the pool follows the Office of Foreign Asset Control’s (OFAC) anti-money laundering guidelines and regulations. Marathon will use technology exclusively approved by DMG Blockchain to ensure that the transactions handled by its pool follow regulatory requirements, enabling transfers to be filtered.
From May 1, the company will devote 100 percent of its existing hash power to the new pool. From June 1, Marathon’s new pool aims to accept hash power pooled from other US-based miners. Marathon plans to have deployed 103,120 miners by 2022, directing 10.37 exahashes per second, or EH/s, to the mining pool — about 6.4 percent of the total combined hash rate of the Bitcoin network.
Marathon believes that its activities would be fully regulatory compliant by preventing transactions with individuals on the US Treasury Department’s Specially Identified Nationals and Blocked Persons List.
The announcement is unclear on how DMG’s technology decides whether transactions were issued by people on the Treasury Department’s blacklist.
Despite the recent increase in institutional interest in Bitcoin, Marathon’s chairman and CEO, Merrick Okamoto, claims that a lack of regulatory guarantees has deterred many companies from investing in Bitcoin mining:
“While institutional interest in Bitcoin is increasing, several large funds and companies have expressed doubts about buying Bitcoin that has been corrupted by criminals.”
“While we understand some miners’ desire to process transactions indiscriminately, we believe it is our duty as a publicly traded corporation headquartered in the United States, and as one focused on facilitating further institutional adoption of Bitcoin, to meet U.S. regulations,” he added.
Despite institutions’ obvious aversion to Bitcoin mining, analysts suggest some U.S. investors have been speculating on the stocks of major mining companies as a way to gain controlled access to the BTC markets.
Last week, Cointelegraph announced that Bitcoin mining stocks had outperformed BTC by 455 percent on average over the previous 12 months, rising nearly 5,000 percent over the same period that Bitcoin had risen 900 percent.
“Until a Bitcoin ETF is approved,” Leeor Shimron, vice president of digital asset strategy at Fundstrat, hypothesized, “investors can view public mining companies as one of the only ways to get exposure to Bitcoin.”