Chinese cryptocurrency and Bitcoin (BTC) Mining equipment maker Canaan has come under the scrutiny of the United States Securities and Exchange Commission (SEC) for its ties to the Beijing government, according to a statement today.
SEC Suspects Bitcoin Mining Company Canaan Is Under Chinese Management Control
In the company statement, it cited the use of an auditor for its 2021 annual report, which the US Public Company Accounting Oversight Board (PCAOB) failed to fully audit, as the reason it came under SEC scrutiny. The auditor in question was KPMG Huazhen LLP.
The Holding Foreign Corporation Liability Act (HFCAA), completed in 2021, aimed to remove companies controlled by foreign governments from the US public markets.
Canaan must submit documents to the SEC by May 25 to prove that it is “not owned or controlled by a foreign government.” If the manufacturer of cryptocurrency mining equipment is designated as such for three consecutive years, there is a risk of removal from the US markets.
Canaan said in a statement Thursday:
“The company will continue to comply with applicable laws and regulations in both China and the US and will endeavor to maintain its listing status on the Nasdaq.”
Canaan is one of the 70 organizations that came under the SEC’s scrutiny, along with other companies including electric vehicle manufacturers XPeng and Nio, e-commerce giants JD.com and Trip.com, and Sinovac Biotech, one of China’s COVID-19 vaccine manufacturers. became one.
The SEC recently approved Valkyrie’s Bitcoin Futures ETF.
*Not investment advice.