Topic: Is selling hash rate legal? (Read 1782 times)

It depends what you write. Currently Bitcoin is a special thing as the regulation differs. Since to reduce the risk of legal problem, The hash rate is packaged as Helping you to deduce complex problem such as configurations.

The second is an actual machine to help you out, which will be shipped on hand. Is that illegal? These people not to say anything about the return, which ensure the issue.

It's just commodity or service which helps you on the searching game. To label bitcoin (or related), Hashrate is just commodity or services, but the satisfied one (token) is treated as share.

 

Why not sell it as a service?  In return for $X, the company promises to run a miner or miners at whatever hashrate, and any results of that accrue to the purchaser, or the mining pool of their choice.  Any agreement between the purchaser and the mining pool is between those two entities, and all the company is promising to do is run a program for some period of time, guaranteeing no results.

Is correct grammar illegal?

The question, I think, that you are asking is: can a company legally accept money from public purchasers in exchange for its hashrate?

The answer is: It depends.

For United States issuers, at least, I can add some detail.  The way that most companies have been going about this is by selling "perpetual mining bonds".  These things - whatever else they might be - are securities subject to the registration requirements of the Securities Act.  That means that the company must pay a princely sum to attorneys and often auditors for securities compliance work. For small issuances like the "IPOs" we've seen, that just isn't cost-effective.  Furthermore, they can only be sold to a limited number of non-accredited or unsophisticated investors.  Issuers have essentially ignored these requirements and sold them anyway, taking investors money in exchange for little more than a promise to pay them back out of whatever profits they generate.  That's not legal.

I think there is another way, a better way, to do this, and without violating the securities requirements.  Instead of selling a right to profits or equity in the company, a company might sell a right to the hashes themselves not tied to the performance of the company.  Just like Amazon might sell its terabytes on a Glacier server, a mining company might sell a subscription to its hashing power directly to its customers.  Key word being customers - not investors.  You'd need a lawyer to prepare a proper contract for you, and it wouldn't be cheap, but I think it can be done.  Also, I think a competent attorney could prepare a contract that might even be freely assignable to other customers.  I'd love to hear the opinion of any legal beagles out there.

Are trolling illegal?

Are mining pools illegal?

That's just a service, no different from any other cloud-based service (Amazon EC2, etc).

You should of said the county you are asking about. Different countries have different laws.

Its illegal, any investment/security have to have licence.

Legal where? Since you didn't specify, I'll go ahead and assume US.

Probably not, but it's contentious and depends somewhat on how the deal's structured, so make sure you have a good lawyer before proceeding. http://en.wikipedia.org/wiki/Securities_and_Exchange_Commission_v._W._J._Howey_Co.

No laws against it here in Canada.. I would consider it a commodity if anything..
Buy here! https://cex.io/r/1/KLYE/0/ 

Is it considered bond/security or simply commodity?

Thanks