Bitmain, a Beijing-based ASIC-mining behemoth, has implemented a new policy that requires KYC-compliance for purchasing its mining equipment. The news produced a mixed reaction in the crypto community with some of its members trying to find the links to the upcoming Bitmain’s IPO, which has already managed to stir up some controversy.
Alex DovbnyaNew rules
From now on, the company will only sell its equipment to individuals who verify their identity. Bitmain, a mining giant that controls over 85 percent of the market, had to introduce the KYC policy in order to comply with the government regulations that aimed at preventing money laundering and other types of illicit activities.
The customers found out about the news after receiving a respective e-mail. All of Bitmain’s clients are encouraged to check their KYC status and upgrade it if there is such a necessity. Those who fail to verify their identity will not be able to purchase the company’s miners in the future. However, domestic customers can still spend up to $2,600.
Customers express indignation
After this bombshell announcement, many users started questioning the real reason behind the KYC compliance. While it’s clearly a must for crypto exchanges to provide the KYC compliance, it’s clearly
not common for chip manufacturers companies to ask for personal information before selling mining equipment.
wtf. That’s basically demanding KYC for purchasing a computer.
— Brian⚡️Lockhart (@BrianLockhart) August 23, 2018
Some people speculate that it could incentivize miners to purchase from a secondary market in order to secure their anonymity. There are also suggestions that the announcement is related to the looming IPO or China’s ongoing crackdown on crypto.
Patrick Thompson
Arman Shirinyan
U.Today Editorial Team
Vladislav Sopov
Dan Burgin