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The U.S. Treasury Department has finally given some clarity and perhaps a sigh of relief to Bitcoin BTC/USD miners with a 300-page proposal under the 2021 Infrastructure Investment and Jobs Act. The proposal clarifies the tax reporting and data collection obligations of crypto exchanges, payment processors, and BTC mining operations.

A new tax form, the 1099-DA, has been rolled out for these parties to streamline the process. By giving miners their own tax form, the Treasury Departmentinsulated them from more unexpected requirements.

However, U.S. lawmakers' focus on energy consumption for miners and the need for data transparency sets a bar for forward-looking mining operations and puts the onus on them to collaborate with regulators and future-proof their own regulatory fates.

Mark Zalan, founder and CEO of GoMining, a BTC mining company focused on transparency and compliance that reportesover $57 million in capitalization on its site, views the move by the Treasury with some optimism while monitoring regulatory investments in the U.S. and globally.

Also Read:Bitcoin Halving To Create Perfect Storm For Bulls, Says $3.5B Crypto Fund

Mark Zalan, founder and CEO of GoMining (Image source: GoMining)

Benzinga spoke with Zalan about the Bitcoin regulatory landscape.

BZ: How important is the U.S. regulatory structure to Bitcoin miners?
MZ: GoMining firmly believes in the potential of Bitcoin. Operating with Bitcoin in the U.S. is smoother due to its classification as a commodity rather than a security. Our focus is on closely monitoring the regulatory landscape in the U.S. and globally. As we navigate these dynamics, we are committed to adhering to all relevant regulations in our operating regions, ensuring compliance as a key priority for our operations.

BZ: With the MiCA legislation now enacted, is the European Union suitable for mining operations?

MZ: Given their unified approach and understandable rules and regulations, the answer is yes. The introduction of a unified and structured regulatory framework for crypto assets under MiCA brings with it legal clarity and market integrity, creating a more secure environment for developers, service providers, and investors. However, suitability for mining operations would also depend on factors such as energy costs, access to resources, and other local considerations.

BZ: Does a bear market in crypto make it harder to operate profitably as a mining operation?

MZ: Minor fluctuations have a minimal impact on our business. When the Bitcoin market was in decline, we took some strategic actions. Leveraging wholesale prices, we acquired additional equipment while selling off older gear, making way for new energy-efficient devices. So we secured inexpensive electricity, allowing us to generate more computing power with the same energy input, thus stabilizing mining rewards.

BZ: Are decentralization and transparency key parts of building trust and security for users?

MZ: Indeed, our newly implemented infrastructure actively contributes to decentralization, significantly boosting trust within our system. Actually, this infrastructure introduces a distinct model that goes well beyond merely selling hash rate.

The concept is inspired by the liquid staking narrative, enabling users to participate in mining freely while leveraging tokens that represent their locked stake in the network validator. The liquid Bitcoin hash rate (LBH) functions in a similar manner: the physical mining equipment, along with its associated hash rate, operates within a data center, while the user possesses an NFT representing their ownership of the hash rate position. The LBH protocol contributes to the overall decentralization and trust in the system.

By tokenizing the Bitcoin hash rate as LBH tokens, GoMining enables users to participate in the PoW consensus in a transparent and decentralized manner, enhancing the trustworthiness of the mining process.

BZ: How can BTC mining operations win over people's "hearts and minds" and avoid future regulatory hits?

MZ: To enhance their reputation and win favor within the blockchain community and beyond, mining operations should prioritize transparency and accountability, providing clear information about their activities and adhering to ethical practices. Cybersecurity measures, innovation, compliance, social responsibility, and strategic partnerships further contribute to building trust and establishing mining operations as reliable and responsible entities in the industry.

Summary
This latest decision from the U.S. Treasury Departmentis definitely some good news for the crypto mining industry. Of course, this is just one step forward for the time being that makes life easier for mining operations. Still, given the atmosphere of uncertainty created by the Security & Exchange Commission (SEC), there will be more hills to climb before crypto-related businesses can finally breathe easily and operate with some consistency.

Until then, GoMining is right to mind their transparency and reporting carefully. The winners in Web3 in 2023 will have to live down the actions of bad actors like FTX that came before them if we are to bring crypto into mainstream acceptance.

To hear the latest on the evolution of the crypto industry and regulation in the U.S.,join Benzingas Future of Digital Assets in NYC on Nov. 14, 2023 to stay updated on trends like AI, regulations, SEC actions & institutional adoption in the crypto space.Secure early bird discounted tickets now!

Read Next:Bitcoin Whale Exposed – Robinhood Revealed As Owner Of Massive Wallet

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UK restores diplomatic ties with Syria

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UK restores diplomatic ties with Syria

The UK has re-established diplomatic ties with Syria, David Lammy has said, as he made the first visit to the country by a British minister for 14 years.

The foreign secretary visited Damascus and met with interim president Ahmed al Sharaa, also the leader of the rebel group Hayat Tahrir al-Sham (HTS), and foreign minister Asaad al Shaibani.

It marks the latest diplomatic move since Bashar al Assad’s regime was toppled by rebel groups led by HTS in December.

In a statement, Mr Lammy said a “stable Syria is in the UK’s interests” and added: “I’ve seen first-hand the remarkable progress Syrians have made in rebuilding their lives and their country.

“After over a decade of conflict, there is renewed hope for the Syrian people.

“The UK is re-establishing diplomatic relations because it is in our interests to support the new government to deliver their commitment to build a stable, more secure and prosperous future for all Syrians.”

Foreign Secretary David Lammy shakes hands with Syrian interim president Ahmed al-Sharaa in Damascus. Pic: X / @DavidLammy
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Foreign Secretary David Lammy with Syria’s interim president Ahmed al Sharaa in Damascus. Pic: X / @DavidLammy

The Foreign, Commonwealth and Development Office has also announced a £94.5m support package for urgent humanitarian aid and to support the country’s long-term recovery, after a number of British sanctions against the country were lifted in April.

While HTS is still classified as a proscribed terror group, Sir Keir Starmer said last year that it could be removed from the list.

The Syrian president’s office also said on Saturday that the president and Mr Lammy discussed co-operation, as well as the latest developments in the Middle East.

Read more:
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Since Assad fled Syria in December, a transitional government headed by Mr al Sharaa was announced in March and a number of western countries have restored ties.

In May, US President Donald Trump said the United States would lift long-standing sanctions on Syria and normalise relations during a speech at the US-Saudi investment conference.

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From May: Trump says US will end sanctions for Syria

He said he wanted to give the country “a chance at peace” and added: “There is a new government that will hopefully succeed.

“I say good luck, Syria. Show us something special.”

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Defiance in Tehran as Khamenei makes appearance

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Defiance in Tehran as Khamenei makes appearance

They rose to their feet in ecstatic surprise, shouting “heydar, heydar” – a Shia victory chant.

This was the first public appearance of their supreme leader since Israel began attacking their country.

He emerged during evening prayers in his private compound. He said nothing but looked stern and resolute as he waved to the crowd.

He has spent the last weeks sequestered in a bunker, it is assumed, for his safety following numerous death threats from Israel and the US.

His re-emergence suggests a return to normality and a sense of defiance that we have witnessed here on the streets of Tehran too.

Earlier, we had filmed as men in black marched through the streets of the capital to the sound of mournful chants and the slow beat of drums, whipping their backs with metal flails.

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Defiance on streets of Tehran

This weekend they mark the Shia festival of Ashura as they have for 14 centuries. But this year has poignant significance for Iranians far more than most.

The devout remember the betrayal and death of Imam Hussein as if it happened yesterday. We filmed men and women weeping as they worshipped at the Imamzadeh Saleh Shrine in northern Tehran.

The armies of the Caliph Yazid killed the grandson of the Prophet Muhammad in the seventh-century Battle of Karbala.

Shiite Muslims mark the anniversary every year and reflect on the virtue it celebrates, of resistance against oppression and injustice.

But more so than ever in the wake of Israel and America’s attacks on their country.

The story is one of prevailing over adversity and deception. A sense of betrayal is keenly felt here among people and officials.

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Many Iranians believe they were lured into pursuing diplomacy as part of a ruse by the US.

Iran believed it was making diplomatic progress in talks with America it hoped could lead to a deal. Then Israel launched its attacks and, instead of condemning them, the US joined in.

Death to Israel chants resounded outside the mosque in skies which were filled for 12 days with the sounds of Israeli jets. There is a renewed sense of defiance here.

One man told us: “The lesson to be learned from Hussein is not to give in to oppression even if it is the most powerful force in the world.”

A woman was dismissive about the US president. “I don’t think about Trump, nobody likes him. He always wants to attack too many countries.”

Pictures on billboards nearby draw a line between Imam Hussein’s story and current events. The seventh-century imam on horseback alongside images of modern missiles and drones from the present day.

Other huge signs remember the dead. Iran says almost 1,000 people were killed in the strikes, many of them women and children.

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Officially Iran is projecting defiance but not closing the door to diplomacy.

Government spokeswoman Dr Fatemeh Mohajerani told Sky News that Israel should not even think about attacking again.

“We are very strong in defence and as state officials have announced, this time Israel will receive an even stronger response compared to previous times,” she said.

“We hope that Israel will not make such a mistake.”

But there is also a hint of conciliation: Senior Iranian officials have told Sky News that back-channel efforts are under way to explore new talks with the US.

Israel had hoped its attacks could topple the Iranian leadership. That proved unfounded, the government is in control here.

For many Iranians, it seems quite the opposite happened – the 12-day war has brought them closer together.

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Secret Service seizes $400M in crypto, cold wallet among world’s largest

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Secret Service seizes 0M in crypto, cold wallet among world’s largest

Secret Service seizes 0M in crypto, cold wallet among world’s largest

Secret Service quietly amasses one of the world’s largest crypto cold wallets with $400 million seized, exposing scams through blockchain sleuthing and VPN missteps.

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