DMG to launch regulatory-compliant mining pool in Canada

DMG Blockchain Solutions, based in Vancouver, Canada, announced the creation of a mining pool aimed at North American clients seeking corporate transparency. This was reported by Bitcoin Magazine.

The new pool is named Blockseer. It promises its clients ‘good governance’ and regulatory compliance, as well as plans to compete with mining pools from China.

‘Blockseer will become the first mining pool in North America not only to comply with OFAC requirements for BTC addresses, but also to deliver the highest level of transparency, auditability, and corporate governance,’ the company said.

CEO Sheldon Bennett of DMG Blockchain Solutions said the company is not aiming for price competition, but is prepared to offer value through its services.

‘We are of interest to miners who care about fair billing and ‘clean’ blocks (not including transactions related to illicit activities),’ he explained.

According to him, miners are willing to pay a premium for this.

‘We believe that companies are willing to pay standard fees, for example, 2% for full transparency. They are willing to pay extra to ensure that when moving coins, their servers/miners do not interact with North Korean, Iranian or other wallets listed on the OFAC blacklist,’ Bennett added.

DMG Blockchain Solutions is a public company whose shares are listed on the Toronto Stock Exchange’s venture board. In 2018, Charlie Lee, creator of Litecoin, joined as a shareholder and advisor.

Ethan Vera, co-founder and chief financial officer of Seattle-based mining software provider Luxor, predicts major changes in North America’s mining landscape. He believes that in the end only pools that meet regulators’ requirements will remain.

‘Miners are becoming increasingly institutional and require reliable partners. The advantage of working with an American mining pool lies in contracting with a company operating in the same legal jurisdiction, with real recourse in case of any problems,’ he stressed.

HASHR8’s head of research John Li Quigley argues that DMG Blockchain Solutions will have a hard time attracting clients due to economic considerations.

‘The location of the mining pool ranks low on the priority hierarchy. Factors such as fees, add-ons and industry connections are far more important to miners than transparent regulatory compliance,’ the analyst said.

The largest Bitcoin mining difficulty decline since 2011 occurred in early November decline in the network, creating the groundwork for growth of the industry in North America. It was caused by the recent drop in hashrate of 27% amid the end of the rainy season in Sichuan and the related migration of miners.

‘Thanks to the decline in difficulty and the rise in Bitcoin, miners are entering an extremely profitable period for mining the first cryptocurrency,’ HASHR8’s latest report says.

According to BitInfoCharts, the profitability metric has returned to levels seen before the third halving.

Source: BitInfoCharts.

As noted, total revenue of miners of the first cryptocurrency for October amounted to $352.7 million — up 8% from September’s figures.

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