Canadian Bitcoin Mine Operator Facing $7 Million Fine for Setting Up Power Plants Without Permission
Link Global, a bitcoin mine operator in Canada, is facing a fine of up to $7 million for installing power plants to run its miners without government permission. The company installed several power plants without following legal procedures and alleges that, if the penalty is enforced, it will constitute a fatal blow to its finances. Link Global Facing Hefty Fine
A bitcoin mine operator in Canada could be fined up to $7 million after setting up a mining operation with power plants without having permission from the government in Alberta. Link Global started operations in Alberta by setting up four gas generators at a site in Sturgeon County, near Edmonton, and also another mine in Kirkwall. According to reports, none of these sites complied with the rule of the Alberta Utilities Commission.
The case was put in motion when neighboring communities complained about the noise the sites created. The authorities notified the company it did not comply with their requirements earlier this year, on August 25, and stopped operations of the two mining sites involved. Each of the sites had been operating for more than a year in those conditions. Two Types of Penalties, CEO Reassures Shareholders
The Alberta Utilities Commission divides the penalties proposed into two major parts: the first one has to do with the benefits obtained for generating power. The institution alleges that damages in this regard amount to two million dollars. The other part has to do with the benefits obtained for mining bitcoin using this power. This amount goes up to five million, according to estimations.
Link Global is contesting the fines, explaining that they are not based on the actual financial reports of the company. It is now relocating these bitcoin mining operations to other locations, to comply with current regulations. Stephen Jenkins, CEO of Link Global, declared to local media: Link has followed the orders issued by the AUC and believes that what enforcement staff is proposing is punitive … I apologize to our shareholders who do not deserve this. We will work tirelessly to ensure the outcome is positive.
The company and its shareholders, which are in the process of building two new bitcoin mines in the region, will have to wait till October 14, where their destiny and the definitive fine will be decided in a hearing.
What do you think of Alberta’s regulation on power plants? Tell us in the comments section below. Russia, US in Top 3 for Crypto-Related Threats, Cybersecurity Report Unveils NEWS | 5 hours ago Laos to Study Digital Currency With Help From Japanese Fintech, Report Reveals NEWS | 11 hours ago Tags in this story alberta, auc, Bitcoin, Cryptocurrency, link global, mining, penalty, Regulation
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