SEC Cancels BITCF’s Trading License, Concerns Over Asset Values
The SEC files a suspension for trading of shares for BITCF through September 7th on fears of misreported assets.
In a statement that will likely make waves in the cryptocurrency community, the SEC announced it has suspended shares of the publicly traded First Bitcoin Capital (BITCF). The suspension is set to last through September 7 at 11:59AM. Prior to suspension, the share price was at $1.79.
The statement gave few details but did include the SEC’s concerns regarding the stated value of assets held by the company.
"The Commission temporarily suspended trading in the securities of BITCF because of concerns regarding the accuracy and adequacy of publicly available information about the company including, among other things, the value of BITCF’s assets and its capital structure.”
The company has been working in the Bitcoin market, running companies for travel, shopping, and cryptocurrency exchange. They also offer franchise opportunities in Bitcoin ATMs under the name BitCannPay.
SEC position is clear
The suspension reflects the SEC’s commitment to add additional controls to the cryptocurrency marketplace. The recent statement regarding the DAO token sale, coupled with today’s ruling, indicate the regulator is beginning to take a firmer role in the largely unregulated digital currency market.
The SEC’s statement regarding ICOs, however, has been met with some confusion given the CFTC’s willingness to clear LedgerX for Bitcoin futures and options trading.
The suspension of a single Bitocin company may have nothing to do with the SEC’s position on Bitcoin as a cryptocurrency. It does however indicate that the SEC is willing to take a stand on cryptocurrency issues. Recent predictions regarding fines and closures of cryptocurrency exchanges have come to fruition, and may signal more to come.