I haven’t traded US OTC for quite a while. Looks like the issues arise from the BC-connected companies that trade in US who fail to file proper financial statements. You cannot trade these stocks as they have cease-trade orders from BCSC. I do not see anywhere that BC residents cannot trade the pink sheet; however, I can see some brokerages deciding not to engage in the US OTC market due to too many illegal activities (pump & dump scheme). Here is a recent copy of notice from IIROC (new national body of regulation). It will be implementing similar conditions set out in BCSC. By the way, BCSC condition of registration will expire at the end of 2011.