Is Cryptocurrency Mining Legal?

Cryptocurrency mining is a lucrative venture for those with the right hardware and technical know-how. While not everyone can mine cryptocurrency, it is legal in most countries, with only a few exceptions. In the United States, it is perfectly legal to mine Bitcoin. Illegal activity only accounts for a small fraction (3%) of what happens on the Bitcoin blockchain.

Individuals interested in mining cryptocurrency can identify both free and paid cloud mining hosts and rent mining equipment for a certain period of time. The Estonian Ministry of Finance has concluded that there are no legal obstacles to using bitcoin-like cryptocurrencies as a payment method. To ensure that only verified cryptocurrency miners can mine and validate transactions, a proof-of-work (PoW) consensus protocol has been put in place. The best place to find mining pools is CryptoCompare, where miners can compare different mining pools based on their reliability, profitability and the currency they want to mine.

Official cryptocurrency mining pools are considered more reliable, as they receive frequent updates from their host companies, as well as regular technical support. According to the Financial Crimes Enforcement Network (FinCEN), cryptocurrency miners are considered money transmitters and may therefore be subject to laws governing that activity. When it comes to Bitcoin mining, each individual transaction is grouped into “blocks”. While some have worried that Bitcoin's price has been supported by illegal transactions, research shows that illegal activity is only a small fraction (3%) of what actually happens on the Bitcoin blockchain.

Faisal Abdul
Faisal Abdul

Extreme internet specialist. Wannabe twitter junkie. Friendly zombie geek. Freelance twitter buff. Professional student. Passionate tv evangelist.

Leave Message

Required fields are marked *