SOS Cleared to Mix Crypto Mining With Exchange
The Chinese holding company that once provides marketing data, technology and solutions but later started crypto mining is now about to run its own crypto exchange. SOS Limited, formerly known as China Rapid Finance Limited, says its US and Canadian subsidiaries have obtained money services business (MSB) licenses to act as a dealer for foreign exchange as well as virtual currencies.
The set up of a digital currency exchange is a key component of the company’s overall digital currency business plan designed around blockchain technology, says its CEO, Yandai Wang, in a public statement. He adds:
“We anticipate this exchange will be operated via US XX Exchange Ltd, our U.S. subsidiary, Canada XX Exchange Ltd, our Canadian subsidiary, or subsidiaries in other select jurisdictions. Receipt of the two MSB licenses is a major milestone in our compliance efforts. The mutual promotion of mining and exchange businesses will provide us with multi-faceted experience and progress towards the commercialization of blockchain technology.”
The MSB licenses from the U.S. Financial Crimes Enforcement Network (FinCEN) and Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) may be related to the non-binding letter of intent SOS entered into to acquire a Canadian-based company that specializes in blockchain technology consulting and operations in January.
It announced at the time that it wants to acquire FXK Tech Corporation which supports cryptocurrency exchanges and cloud crypto algorithmic power exchanges to further extend the SOS ecosystem of blockchain and cryptocurrencies to North America.
It was shortly after the company made its plans known that it wanted to invest in crypto mining to take advantage of the growing investors’ realization of the values and potentials of the crypto assets. Its shared focus includes to provide a variety of cloud-based crypto mining services such as self-mining, miner trusteeship, crypto-related DeFi, security and insurance services for cryptocurrencies.
As one of the best-performing crypto mining stocks in the market in 2021, the Chinese blockchain services company recently disclosed it entered into a non-binding letter of intent to acquire the majority of the equity interests of each of three US-based power plants. The move is to enable SOS’ cryptocurrency business to achieve significant results with their planned development of a mining operation in the US, according to Wang.
Meanwhile, the general bullish trend for cryptocurrencies is optimistic. According to this week’s GlassNode on-chain analysis, Bitcoin’s on-chain support has been strengthened by miners’ return to accumulation even as the supply held in over the counter (OTC) desks is depleted. The crypto data analytics firm notes that Bitcoin held on OTC desks has been in constant decline through 2021, even as miners distributed coins meaning institutional demand has absorbed more supply than available in 2021.
A recent acquisition of more rigs added to its prior fleet of 5,000 mining rigs, sets the company aiming for a combined fleet capacity that’ll calculate an average of 353 Peta-Hashes per second for mining Bitcoin and 707 Giga-Hashes per second for mining Ether by Q1 2021.
In a related news, application-specific integrated circuit (ASIC) chip design company and manufacturer, Ebang this week confirms it has been trading its shares on the Nasdaq and has raised more than $100 million for the manufacturing of newer Bitcoin mining machines models, as well as launch a cryptocurrency exchange among other things.