[2014-08-17] CFPB to bitcoin investors: You’re in the ‘Wild West’

http://www.marketwatch.com/mw2/palm/marketwatch/story.asp?guid={0A4DD51E-217B-11E4-BF9C-00212803FAD6}

In a consumer advisory released on Monday, the Consumer Financial Protection Bureau (CFPB) outlined four major risks: hackers, a lack of protections, cost and scams. This comes after a year of industry, state and federal regulators .

The Securities and Exchange Commission issued its first alert last year, calling bitcoin a vehicle for Ponzi schemes. It issued another notice this May, citing bitcoin’s “potential to give rise both to frauds and high-risk investment opportunities.” Wall Street’s self-regulator, the Financial Industry Regulatory Authority, called bitcoin “more than a bit risky.” (Read: .)

“Virtual currencies are not backed by any government or central bank, and at this point consumers are stepping into the Wild West when they engage in the market,” CFPB Director Richard Cordray said in a release.

Topic: [2014-08-17] CFPB to bitcoin investors: You’re in the ‘Wild West’ (Read 689 times)