Dominion Bitcoin Mining hit with cease-trade order
Saskatchewan company may be in violation of securities law, provincial watchdog says
A Saskatchewan company involved in the electronic currency bitcoin has been issued a cease-trade order for possible violation of the province's securities laws.
On Tuesday, the province's Financial and Consumer Affairs Authority said it had issued the order against Dominion Bitcoin Mining Company.
The government says the company purports to be in the business of "mining bitcoin."
A bitcoin is a form of digital currency which can be used to buy things online and, in some cases, in stores.
People with special software use computers to participate in the network that conducts the transactions — and then get paid in bitcoins. That process is called mining.
The order directs that all trading in securities issued by Dominion cease up to and including May 15. The order may be extended, pending further investigation.
"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," a news release from the province said.
The province says Dominion is a federally incorporated company with a registered office in Saskatchewan.
The Dominion Bitcoin website says the company plans to establish bitcoin "mines" at several sites, with Regina being the first one.
The government said it appears Dominion is accepting investors from all 10 provinces, so it has contacted regulators in all 10.