U.S. State Regulators issue warnings on virtual currency

by Inline Policy on 30 Apr 2014

Investors should consider risks associated with virtual currencies, including bitcoin, before trading in them, two U.S. regulators warned on Tuesday.

The warnings are the latest in a string of advisories from U.S. state regulators, including Nevada and Maryland, as they look to toughen rules on the use of the controversial cryptocurrency.

"The value of virtualcurrencies is highly volatile and the concept behind the currency is difficult to understand even for sophisticated financial experts," Andrea Seidt, president of the North American Securities Administrators Association (NASAA) president, said in a statement on Tuesday.

NASAA is a Washington-based group of state securities regulators.

The Alabama securities regulator also issued an advisory, expanding on an earlier warning. It has reviewed dozens of complaints from around the United States from consumers who were unable to withdraw their money from bitcoin exchanges.

Most of those complaints were about Mt. Gox, once the world's biggest bitcoin exchange.

The exchange filed for bankruptcy protection in Japan in February, saying it may have lost nearly $350 million worth of the virtual coins due to hacking.

Virtual currencies are subject to minimal regulation and such accounts are not insured by the Federal Deposit Insurance Corporation.

policy-regulation-tech-sector-guide

Source: Reuters

Topics: Economy, Financial services

Inline Policy

Written by Inline Policy

Get the latest updates from our blog

Related Articles

Distributed Ledger Technology (DLT), sometimes referred to as blockchain, is coming under increased scrutiny ... Read more

MEPs ask thousands of questions to the European Commission each year and during the 2009-2014 term of the ... Read more

The world’s youngest leader, Austrian Chancellor Sebastian Kurz, will take the helm of the Council of the EU ... Read more

As Mark Zuckerberg takes his seat to answer questions for the first time in the European Parliament, it is a ... Read more

Another day, another report on artificial intelligence? Not quite.  Published today, the 180-page volume by ... Read more

Comments