The SEC has struck again with another suspension, now on the trading on Bitcoin Generation (BTGN) securities. The suspension of this cryptocurrency exchange took place on the 29th of April 2019 at 9:30 a.m EDT. Even though Bitcoin Generation is not particularly well known; let’s find out what the (SEC) Securities and Exchange Commission’s reasons are behind the suspension.
What is Bitcoin Generation (BTGN)?
On its website, Bitcoin Generation states that it is a cryptocurrency exchange based in Bartlesville, Oklahoma. It claims to be the very first publicly traded exchange dealing with crypto. The company also says that it offers a variety of trading pairs, and even fiat to crypto pairs as well; with cryptocurrencies like Ethereum, Bitcoin, Monero, Litecoin, Bitcoin Cash SV as well as Ripple. (check out our top ten cryptocurrencies for this year here.)
Moreover, the company supposedly owns ten thousand mining rigs.
As far as being legitimate and trustworthy, no one knows because they are nowhere near being transparent. Bitcoin Generation has not revealed any financial data, as its last updated income statement was in the third quarter of 2015.
The reasons SEC suspended trading of securities on Bitcoin Generations
SEC’s suspension on Bitcoin Generation is driven by their concerns regarding the accuracy of data in the marketplace; this is among other reasons, including:
1. A public statement made by Bitcoin Generation concerning the valuation and viability of a Bond that they allegedly acquired from a United Kingdom-based entity.
2. The SEC also questioned the amount of common stock the Bitcoin Generation has outstanding.
3. The BTGN stock promotional activities and how they would affect the market.
4. BTGN’s current financial status and the accuracy of the information the public has access to concerning the company’s financial position.
SEC emphasises on taking this statement seriously
The SEC has advised prospective purchasers, broker-dealers and shareholders to take this suspension on Bitcoin Generation seriously or face the consequences. Furthermore, the SEC advises them to be careful and consider the mentioned concerns. Also, to carefully analyse the data issued by the company or any information available.
Furthermore, the SEC specifies that dealers and brokers must not enter into any quotations even after the suspension is no more; unless if it abides by Rule 15c2-11. Therefore, any dealers and brokers who go against the rules will have to deal with “prompt enforcement action.”
SEC with more actions against the crypto world is not a surprise!
The SEC’s suspension on Bitcoin Generation shouldn’t be much of a surprise for those who intentionally follow the crypto industry. It is not a shock that the SEC has come after the Cryptocurrency industry again with restrictions and alike. The Sec has implemented yet another aggressive action against Bitcoin, even as Bitcoin ETF’s are still hanging in the balance, leaving organisations with uneasiness about their Futures. (check out the progression on Bitcoin ETF approval here.)
It stands to reason that as an industry becomes more popular, the government will turn in its direction. Therefore, the SEC’s suspension on Bitcoin Generation; is merely a reaction along with all the other actions implemented by the SEC. The good thing about this suspension, however, is that it is only temporary. What do you reckon the SEC will do next? Drop us a comment with your thoughts.