SEC Suspends Another Public Bitcoin Exchange

Crime, ICO News, Investing, News, Regulation | August 28, 2017 By:

The U.S. Securities and Exchange Commission (SEC) has again taken action against a public bitcoin exchange. This time, a company known as American Security Resources Corp. (ASRC) is the target.

The SEC issued a trading suspension late on Aug. 24 that is effective until Sept. 8 at 11:59 a.m. for ASRC. The trading suspension came as a result of concerns on publicity issued by the company. ASRC said earlier this month it would start its own cryptocurrency exchange, to be known as the “Bitcoin Crypto Currency Exchange Corporation.”  The new name marked yet another re-branding by a company that has been bought and sold several times.

The SEC today ordered a temporary freeze, citing concerns over press releases the company has issued regarding the pending exchange. “The Commission temporarily suspended trading in the securities of ARSC because of questions that have arisen regarding publicly available information about the company in press releases on OTCMarkets.com, dated August 1, and August 8, 2017, concerning, among other things, the company’s business transition to the cryptocurrency markets and early adoption of blockchain technology.”

Last week, the SEC temporarily suspended publicly traded First Bitcoin Capital, citing concerns over alleged misleading public information by the Canada-based corporation, including the value of assets it controls and its capital structure.

The suspension will last at least until 11:59 a.m. EDT on Sept. 7. First Bitcoin shares are traded over-the-counter. The company violated section 12(k) of the Exchange Act, the SEC alleges, causing the suspension. First Bitcoin Capital operates a bitcoin exchange and an ATM network.

“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,” said the SEC statement.

First Bitcoin Capital issued a response to the SEC suspension and plans to return to trading status.

The SEC has recently taken notice of ICOs and issued guidelines for their outreach, indicating that many are subject to the same scrutiny that other securities require.