A Canadian bitcoin company based in Saskatchewan has been given a cease-trade order for potential violation of the securities laws of the province.
Saskatchewan’s Financial and Consumer Affairs Authority on Tuesday announced that it had given Dominion Bitcoin Mining Company the notice. The authorities say the firm claims to engage in the “business of mining bitcoin”.
A bitcoin is a virtual currency that was founded in 2009 that is intangible, has no government regulation and offers anonymity to its users. It can be used to purchase items over the Internet, and also in certain cases in retail stores.
Bitcoin mining involves using special software and very powerful computers to create the virtual currency. Each bitcoin has its own unique code that makes it very impossible to replicate it. Companies that engage in bitcoin mining normally get paid using the digital currency.
The cease-trade order states that any transactions involving securities related to Dominion end up to and including 15th May. The date can be extended, depending on further investigation. The province also states that Dominion is a federally registered firm with its offices in Saskatchewan, reported CBC News.
“It appears that Dominion has been soliciting investors, and is not registered in Saskatchewan to trade in securities, therefore it may be in violation of Saskatchewan securities law,” said Saskatchewan in a press release.
Dominion, through its website, reveals that it intends to launch bitcoin “mines” in various locations, starting with Regina. Since records showed that Dominion investors hail from Canada’s 10 provinces, the government said it had notified regulators in those 10 provinces. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Deepak Tiwari at firstname.lastname@example.org