Post
Topic
Board Tokens (Altcoins)
Re: ⚡⛏️[ANN] Giga Watt: Best Home for your Mining. Starts today!
by
Mr Frog
on 11/07/2017, 23:37:43 UTC
i dont think GW will have any legal issues

The company is registered, no need for everyone else to register a business in USA.




Yes you do. It does not matter if they are registered. Every company needs to make sure that every business partner can be identified. To do that, they need to dox every customer. If said customers are i.e. using an offshore company, they can be sued by the IRS or every other national group for the support of money laundering, tax evasion or similar.

The fact that they are a registered business also means, that the IRS is regularly checking not only the book, but also contracts between customers and Giga.  Mining in the USA is classified as a business as soon as you are doing it for profit and in a long term mater (the time frame does not really mater that much, but as long as you do it for profit you operate a business and you can't deny you do it for profit). Hence every customer needs to register their business activity with the authorities. You don't do it, Tax Fraud/Tax evasion. And therefore Giga is supporting it, resulting in possible law suits. 

If they accept foreign nationals, its even more difficult and easy to fall into some tax problems....




Its one thing to have a miner in your garage, but a whole other thing if you run a business or in that case need a datacenter where your mining is on record for IRS.  And it does not mater, where you live. EVERY COUNTRY got this rule of operating a business.


So the second you place your miner in another country you need to check if the placing of hardware alone is enough to classify as a permeant place of production....




And like it or not, they have no clue about any of these issues. Collecting money is one thing, making sure you are able to stay belly up another. This might have all been easy for them when they were operating only personal miners, now that they offer it to others, the legal base is a lot different....



That may help ?

In March 2013, the U.S. Financial Crimes Enforcement Network issues a new set of guidelines on "de-centralized virtual currency", clearly targeting Bitcoin. Under the new guidelines, "a user of virtual currency is not a Money Services Businesses (MSB) under FinCEN's regulations and therefore is not subject to MSB registration, reporting, and record keeping regulations." Miners, when mining bitcoins for their own personal use, aren't required to register as a MSB or Money Transmitter.

In general, there are a number of currencies in existence that are not official government-backed currencies. A currency is, after all, nothing more than a convenient unit of account. While national laws may vary from country to country, and you should certainly check the laws of your jurisdiction, in general trading in any commodity, including digital currency like Bitcoin, BerkShares, game currencies like WoW gold, or Linden dollars, is not illegal.

Source: https://en.bitcoin.it/wiki/Myths#cite_note-3

Now as I understood they are not mining for us. We are mining in a way via cloud mining. We own the miner, we own the GW token to get the electricity, we pay the fees, we choose the pool, the coin to mine, even if we want the miner on or off, everything is done by us except maintenance ...via a software. They only host and service our miner technically. No ?

I don't really know if it works like this. I just try to understand.