Digital Currency Group Suspends Dividends Amid Regulatory Trouble With Subsidiary Genesis – Bitcoin News
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Digital Currency Group (DCG) recently announced that it is suspending dividend payments to its shareholders due to regulatory trouble with its subsidiary, Genesis Global Trading. DCG is a venture capital firm that invests in digital currency and blockchain-related companies. Genesis is a digital currency trading platform that has been under investigation by U.S. regulators since 2018.
The announcement, made in a filing with the U.S. Securities and Exchange Commission (SEC), stated that the suspension of dividends was necessary due to the “uncertainty of the regulatory environment” surrounding Genesis. DCG stated that the decision was made in order to “protect the interests of the company and its shareholders.”
The SEC investigation into Genesis began in 2018 after the company was accused of failing to register with the agency as a broker-dealer. The SEC also alleged that Genesis had failed to properly disclose certain transactions, such as those related to initial coin offerings (ICOs).
Since then, Genesis has been working to resolve the issue with the SEC and has been cooperating with the agency. DCG has also taken steps to ensure that the company is in compliance with all applicable regulations.
The suspension of dividends is a sign that DCG is taking the issue seriously. The company is likely hoping to avoid any further legal action by the SEC and is taking steps to ensure that Genesis is operating in full compliance with all applicable regulations.
The news of the dividend suspension has been met with mixed reactions from the digital currency community. Some view it as a necessary step to ensure compliance, while others are concerned that it could have a negative impact on the company’s stock price.
In the long run, however, the suspension of dividends is likely to be a positive step for DCG and its shareholders. By taking proactive steps to ensure compliance with all applicable regulations, the company is showing that it takes its obligations seriously and is committed to operating within the law.
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