Today's Government Warnings on Bitcoin
More state authorities have weighed in on virtual currency and issued warnings about its use.
California and New Mexico have issued new consumer guidance. Alabama, Nevada and Maryland have also issued advisories. Idaho's Department of Finance issued an investor advisory to consider the risks associated with virtual currency.
The risks highlighted include: minimal Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( , cyber-attacks, lack of recourse should one's funds disappear, and its being uninsured by the Federal Deposit Insurance Corporation (FDIC), which insures fiat deposits up to $250,000.
In addition, virtual currency's inherent Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders and susceptibility to fraud or by unregulated institutions make it unsuitable for many investors.
Also, the president of the North American Securities Administrators Association (NASAA), Andrea Seidt, notably commented:
"The value of virtual currencies is highly volatile and the concept behind the currency is difficult to understand even for sophisticated financial experts."
The coordinated state activity comes right after NASAA and the Conference of State Bank Supervisors (CSBS) joined forces to issue a guidance document on virtual currency.
More state authorities have weighed in on virtual currency and issued warnings about its use.
California and New Mexico have issued new consumer guidance. Alabama, Nevada and Maryland have also issued advisories. Idaho's Department of Finance issued an investor advisory to consider the risks associated with virtual currency.
The risks highlighted include: minimal Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( , cyber-attacks, lack of recourse should one's funds disappear, and its being uninsured by the Federal Deposit Insurance Corporation (FDIC), which insures fiat deposits up to $250,000.
In addition, virtual currency's inherent Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders and susceptibility to fraud or by unregulated institutions make it unsuitable for many investors.
Also, the president of the North American Securities Administrators Association (NASAA), Andrea Seidt, notably commented:
"The value of virtual currencies is highly volatile and the concept behind the currency is difficult to understand even for sophisticated financial experts."
The coordinated state activity comes right after NASAA and the Conference of State Bank Supervisors (CSBS) joined forces to issue a guidance document on virtual currency.