The SEC has made another move into the Bitcoin world, this time by temporarily suspending trading on shares of a publicly traded Bitcoin firm. First Bitcoin Capital (BITCF) will face the suspension until at least 11:59 a.m. Eastern time on September 7th. The shares, which are traded over the counter, were trading at $1.79 each at the time that the suspension took effect, according to data from Bloomberg.

SEC Concerned About Value of Assets

A report by Coin Desk, which references a statement made by the SEC in conjunction with the announcement of the suspension, reveals that the regulatory agency has moved to suspend trading for the time being because of broader concerns regarding the information that First Bitcoin Capital published, including the value of assets which the firm claims that it possesses.

In the notice of the suspension, the SEC wrote that "The Commissions 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. This order was entered pursuant to Section 12(k) of the Exchange Act."

First Bitcoin Capital Claims Multiple Business Lines

The firm, which is based in Canada, claims on its website to operate several cryptocurrency-linked business lines. These include a Bitcoin exchange and an ATM network.

This suspension marks the second of its kind for the month of August, as the SEC has already suspended trading on the shares of CIAO Group, a firm that is also publicly traded over the counter, for similar concerns about accuracy of its statements. In the case of the latter firm, however, the statements prompting the suspension had to do with a future initial coin offering (ICO).

Skeptics of the cryptocurrency wave may see these incidents as reason to be cautious about the new technology and area of investment. Certainly, there are many reasons for investors to be hesitant, including concerns about companies which immediately cash out of the token funds generated through ICOs, and more fundamental concerns about the long-term viability of cryptocurrencies as a group. Perhaps some of the trouble with firms such as these has to do with the cryptocurrency industry's history as a decentralized and largely unregulated area. Now that the business prospects are looming larger and larger, regulatory agencies around the world are taking more interest. As a result, it's likely that potentially fraudulent activity will be called at out an increasing rate. Whether this makes investors feel more or less secure about the burgeoning cryptocurrency field, however, remains to be seen and is likely dependent upon the individual investor in question.

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