To hear Bitqyck affiliate Scott Brewster tell it, cryptocurrency mining is illegal in the US.

[18:00] The North American structure, the government and the laws and everything, makes it difficult to impossible to pay miners for introducing mining to other people.

What Brewster is referring to is the offering of an unregistered security, which is of course illegal in the US.

Within the context of MLM cryptocurrency mining, affiliates invest funds with a company and receive a passive ROI, purportedly generated via cryptocurrency mining.

There’s nothing illegal about it, provided the company registers its securities offering with the SEC and is 100% transparent about generated mining revenue.

For some reason Bitqyck don’t want to operate legally in the US though and instead, according to Brewster, plan to offer unregistered securities via Asia.

BehindMLM
reviewed Bitqyck
a year ago and at the time there was no mention of mining as part of the business model.

Attached to Bitqyck is the bitqy altcoin.

Shortly after launch bitqy pumped to 6.5 cents in late October. It has crashed to around 0.4 cents (less than half a cent) over the past few months.

First
announced around July
, Bitqyck sold cloud mining to US residents for $1000.

This appears to be offered mostly in secret. Even today if you visit the Bitqyck website there’s still no mention of bitcoin mining.

But apparently not for long, as according to Brewster Bitqyck has worked out how a US company can offer unregistered securities.

[18:18] So we, Bitqyck, looked and thought, “OK we can’t do that (offer an MLM mining opportunity in the US).

So let’s operate (Bitqyck’s existing opportunity) under the Bitqyck umbrella, and let’s move to Asia and operate (mining) under a completely separate umbrella.

Completely separate ownership. Completely separate everything.

And have that (Bitqyck) over here and we have an international mining organization.

Brewster goes on to state US Bitqyck affiliates themselves won’t be able to invest (coughcough VPN coughcough).

While that goes some way toward compliance, offering and promoting unregistered securities for financial gain (referral commissions), even to non-US residents, is still illegal.

Bitqyck is a US MLM company run by US residents. At the time of publication Alexa estimate 74% of traffic to the Bitqyck website originates out of the US, so it’s safe to assume the majority of their affiliates are in the US too.

US residents running a US company setting up a shell company in Asia to offer an unregistered security through is pseudo-compliance.

It’s not going to fool the SEC should they investigate.

None of this however seems to phase Scott Brewster, Bitqyck or the company’s owners.

According to Brewster, as of March 2nd Bitqyck co-founder Bruce Bise is

[18:53] working on a replicated site for the Asian launch.

So when you speak to somebody in Spain and they sign up, you’re going to give them a different replicated site than Bitqyc

🤖 Quick Answer

What legal issues does Bitqyck face regarding securities registration in the US?
Bitqyck operates an MLM cryptocurrency mining scheme where affiliates invest funds expecting passive returns from mining activities. Without SEC securities registration and transparent revenue disclosure, this structure violates US securities laws. The company allegedly avoids domestic compliance by operating internationally.

Why do Bitqyck affiliates claim cryptocurrency mining is illegal in the United States?
Bitqyck representatives argue that US regulations make it impossible to legally compensate miners for recruitment activities. This assertion obscures the actual issue: offering unregistered securities. Legal mining operations exist; the illegality stems from unregistered investment contracts.

What conditions would make cryptocurrency mining investment offerings compliant with US law?
Companies must register securities offerings with the SEC and maintain complete transparency regarding mining revenue generation and distribution. Legitimate cryptocurrency mining operations can legally operate in the US when properly registered and when

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