Securities regulators in Saskatchewan have cease traded a company that claims to be in the business of mining Bitcoins, alleging that the firm is offering securities without registration or a prospectus.
The Saskatchewan Financial Services Commission (SFSC) has issued a temporary cease trade order against Dominion Bitcoin Mining Co. Ltd., amid SFSC staff’s allegations that the company “appears to be holding itself out as engaging in the business of trading in securities without registration” contrary to securities laws; and, that it “appears to be soliciting investors” to sell securities without a prospectus.
According to the firm’s website, “The intent of transparency and full compliance with securities regulations is an essential value and necessity of the Dominion Bitcoin Mining Company.”
“By taking part in our offering, you own a share in one of the ten provincial companies that own Dominion Bitcoin Mining,” it says. “Investment is being made directly into provincial corporations with local presidents. The assets of these corporations are mining service agreements with the Dominion Bitcoin Mining Company. By this process all investors have direct recourse relative to their investment with their corporate officers and the provincial securities commission that oversees investment process.”
The commission has imposed a temporary cease trade order that expires on May 15, citing the public interest, and the fact that the time required for a hearing would be prejudicial to the public interest. The allegations against the firm have not been proven. The temporary CTO may be extended as deemed necessary by the SFSC.