As of May 1, 2017, Eobot plans to cease all mining operations/connections in the State of Washington due to the regulations from the Department of Financial Institutions (DFI).
The announcement was made on April 11, 2017 with fair warning that all state of Washington residents must withdraw all coins and cease mining through Eobot by May 1. Notice
Here is the complete Chapter 19.230 RCW of the UNIFORM MONEY SERVICES ACT
I'm confused
If this has all been in effect since at least 2014, why is Eobot just recently ceasing operations in Washington state?
Well, I found this on the Washington state site and can understand why anyone might pause to do business when one's business practices might be questioned.
19.230.300 - Criminal penalties
(1) A person that intentionally makes a false statement, misrepresentation, or false certification in a record filed or required to be maintained under this chapter or that intentionally makes a false entry or omits a material entry in that record is guilty of a class C felony under chapter 9A.20 RCW.
(2) A person that knowingly engages in an activity for which a license is required under this chapter without being licensed under this chapter and who receives more than five hundred dollars in compensation within a thirty-day period from this activity is guilty of a gross misdemeanor under chapter 9A.20 RCW.
(3) A person that knowingly engages in an activity for which a license is required under this chapter without being licensed under this chapter and who receives no more than five hundred dollars in compensation within a thirty-day period from this activity is guilty of a misdemeanor under chapter 9A.20 RCW.
[ 2003 c 287 § 32.]
This Act has been in effect since October 1, 2003 with an update which states:
"As to miners of virtual currency, more detailed guidance provides that for certain mining and conversion activities, the party is deemed a user of the virtual currency and is not therefore subject to the registration, reporting and recordkeeping requirements." (Amended in January, 2014.)
Still, I did not find verbiage specifically stating personal mining through a 3rd party (Eobot) was under strict regulation but the legalese is really making my head spin.
Of course the Feds want their cut
Upon further investigation, I found this from the IRS: 16 Questions & Answers on how virtual currency is treated as property for U.S. Federal Tax Purposes, and their general rules for property transactions which basically states that if you are earning more than $600 a year in cryptocurrency, you need to report this as taxable earnings.
But isn't this directed toward an individual and their actions? Why isn't the entire United States affected by earning and mining operations through Eobot? As a resident of Florida, the decision Eobot made doesn't affect me...yet. Should I be concerned? Would it be prudent of me to transfer the funds I've mined through Eobot and close shop there?
I don't know!
Could it be that Eobot was reported to be a money transmitter and therefore given a letter of warning to register as such in the State of Washington?
Are the fees associated with registering so cost prohibitive that Eobot decided to drop an entire state?Are more states slated to be dropped?Can someone with more knowledge on such things help enlighten us?
I feel like I'm reading conflicting information and still a little confused on why Washington state is being dropped from the mining service. Additionally, I have not found any attachments more current than 2014. Eobot did not elaborate on the exact reason for this action but here's the link which started me down this particular rabbit hole: http://www.dfi.wa.gov/bitcoin
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