Bitcoin mining pool BTC Guild has confirmed its permanent shutdown, attributing the decision to escalating regulatory risks and the finalized BitLicense framework. The pool, which once contributed significantly to Bitcoin’s network hash rate, will cease operations by the end of the month.
Key Reasons Behind the Shutdown
Regulatory Challenges:
- The NYDFS BitLicense imposes strict requirements on Bitcoin transmitters, creating legal gray areas and compliance burdens.
- Operator Michael Marsee noted that even though BTC Guild isn’t based in New York, serving New York residents exposes it to jurisdictional risks.
Financial Viability:
- Defending against potential regulatory actions would outweigh projected revenue.
- Declining hash rate (now ~2% of the network) reduced profitability.
Security Concerns:
- Risks of cyberattacks and fraud attempts made operations unsustainable.
- Marsee cited "bad luck" in block-solving and potential foul play by competitors as contributing factors.
"The cost of defending the pool would exceed any income it could generate. The risks are simply too high."
— Michael Marsee, BTC Guild Operator
Timeline and Next Steps
- June 2015: Initial shutdown plans announced.
- Revised Decision: Temporarily stayed operational due to community support.
- Final Shutdown: By June 30, 2015; users have until September 30 to withdraw funds.
Recommended Alternative Mining Pools
- BitMinter
- Eligius
- Kano CK Pool
- P2Pool
FAQs
Why did BTC Guild shut down?
The combination of BitLicense compliance costs, jurisdictional risks, and declining profitability made operations untenable.
Can users still withdraw their funds?
Yes—until September 30, 2015.
Was the pool sold?
No. Marsee ruled out a sale due to privacy concerns and personal attachment to the project.
What happens to its hash rate share?
Miners are advised to migrate to other pools like BitMinter or P2Pool.
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