In regards to this development, the Philippines Security and Exchange Commission (SEC) has the general public against investing their funds on cloud mining that advertise on the social media. The SEC has also warned unregistered exchanges could face serious legal consequence under the Philippines law.
Cloud Mining is the process of cryptocurrency mining using a remote data center with shared computer resources, data and internet access. The mining equipment is usually kept in a facility owned and maintained by the mining company.
The Philippines Government made this announcement in a publication on its website, it noted that “certain individuals or groups of persons are enticing the public, through a popular social media platform or in their own independent websites, to invest in so-called cloud mining contracts.”
The SEC noted that as defined by the Philippines law as discussed by the Honorable Supreme Court in Power Homes Unlimited vs. SEC (G.R. No. 164182, February 26, 2008), a cloud mining contract is an investment contract which falls within the domain of “securities” since the investor would most likely part with his money.
Other information provided on the publication reveals that any individual or company selling or convincing people to invest in any cryptocurrency mining scheme through the internet without having proper authorizations from the commission may be held for a criminal offense under Section 28 of the nation’s Security Regulation Code. The defaulter might bag a maximum of twenty-one years of imprisonment.
The business of Cryptocurrency Mining
Mining cryptocurrency is not without its challenges. It takes a lot of determination and will power to start mining and keep it up as a profit-making scheme. By understanding the common problems miners face, you’ll be better prepared when you face them, and you’d be able to solve them.
There are two options for cloud mining and hardware mining. While cloud mining has to do with mining remotely without physical mining equipment, hardware mining comes with the full package. Most people prefer to set up a Bitcoin miner as it is more profitable than cloud mining in some cases. If you want to set up your Bitcoin miner, you need to know that it is expensive and upgraded versions are made now and then. However, investors are usually to apply caution when investing in cloud mining companies.