The SEC (US Securities and Exchange Commission) issued a temporary ban on the shares of publicly traded Bitcoin firm – First Bitcoin Capital.
The Commission issued a statement indicating that the suspension will take place between 9:30am on the 24/8 and would continue to at least 11:59am on September 7th (Eastern Time). Currently, the shares of First Bitcoin Capital are traded on an over-the-counter basis, and up to this point were traded at $1.79 a piece (Bloomberg).
Reasons behind the suspension are that there has been concern raised over the information provided by First Bitcoin Capital, in particular the value of its assets that they claim to possess. Their website indicates that the Canadian based firm conducts numerous cryptocurrency-related business lines, one of which being a bitcoin exchange as well as a number of ATMs. They also didn’t initially respond or comment on the matter despite a request being made. (You can check out www.bitcoincasino.org to view other bitcoin related business like bitcoin casinos)
The suspension notice issued by the agency indicated that it is due to these concerns regarding the accuracy and adequacy of the information that is publicly available in relation to First Bitcoin Capital. The value of its assets and its capital structure, among other concerns caused the agency to step forward and make the suspension.
This is the second ban relating to cryptocurrency initiated by the SEC this month alone, it is previously reported by CoinDesk, that the agency also suspended shares of the CIAO Group. This is an OTC-traded firm also and this was due to concerns related to statements regarding an upcoming initial coin offering.