The Bitcoin Disclosures

Finra. The SEC. And now top regulators in Connecticut and Georgia; All are decrying the risks behind virtual currencies, in particular Bitcoin.

It’s a righteous move –one that is, interestingly enough, being heralded by a group of Bitcoin businesses.

During a public hearing this past week in Chicago hosted by the Conference of State Bank Supervisors, several cryptocurrency entrepreneurs (including executives from CoinX and BitPay) had this to say:

The panelists urged state and federal regulators to provide clear and consistent regulatory expectations and guidance without restricting innovation.  The panel commended the Task Force for issuing model consumer guidance to provide more information to consumers considering transacting in virtual currencies.

Read the entire press release, here

From one of my stories this week:

The state Department of Banking and Finance had a stark warning for Georgians late last month: If you invest or use digital currencies, such as Bitcoin, you are largely on your own.

As a part of the guidance, the department recognized the growing popularity of this new way to pay, as well as its propensity to be abused by cheats and fraudsters.

Regulators can do little to help if you get ripped off.

“At this point, you do realize, right, that’s not an FDIC insured institution?” said Kevin Hagler, commissioner of the Georgia Department of Banking and Finance, in an interview with The Atlanta Journal-Constitution.

 

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