US state regulators issue warnings on bitcoin, other virtual currencies
Investors should consider risks associated with virtual currencies, including bitcoin, before trading in them, two US regulators warned on Tuesday.
The warnings are the latest in a string of advisories from US state regulators, including Nevada and Maryland, as they look to toughen rules on the use of the controversial crypto-currency.
"The value of virtual currencies 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), 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.
Copyright @ Thomson Reuters 2014
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
