A tiny Regina bitcoin startup, Dominion Bitcoin Mining Co., says it has been “exonerated” after facing allegations from Saskatchewan’s securities regulator last year that it was soliciting investors without the proper paperwork.
In a decision dated Oct. 22, a three-member panel of the province’s Financial and Consumer Affairs Authority (FCAA) ruled that no trading or other breaches of Saskatchewan’s Securities Act occurred.
“It is the determination of the Panel that, notwithstanding the initially apparent validity of the allegations of the FCAA Staff, an offering of shares did not at material times exist, and the parties did not individually or collectively engage in any acts in furtherance of trading or in any breach of the provisions of the Act,” the decision reads.
...
Jason Dearborn, a former Saskatchewan party MLA and a co-founder of the company, said he plans to sue the Saskatchewan regulator for libel for making the allegations. He also says he is pursuing other legal action for alleged violations of the Charter of Rights and Freedoms that he says took place during interviews with investigators. He also alleges his company’s website was accessible to investigators only because it had been hacked.
“These guys are just absolutely ridiculous,” he said of Saskatchewan’s securities regulator. “ ... This is just a Mickey Mouse organization.”
He said Dominion’s plans to mine bitcoins, and engage in bitcoin trading are still under development but that it would probably not do any business in Saskatchewan.
However, he said the company has continued to mine bitcoin in the meantime. But Mr. Dearborn said Dominion had not sought out any external investors, and that it would operate in full compliance with securities laws.
http://www.theglobeandmail.com/report-on-business/industry-news/the-law-page/regina-bitcoin-startup-exonerated/article26963085/
