Links in “Virtual Currency”

The Bureau warns consumers about using digital currency for three reasons: a) volatile exchange rates, b) high threat from hackers and scammers, and c) digital currency is uninsured by any agency. [8/12/14]

The CFPB issued a warning to consumers about the risks of digital currency and announced it is now accepting complaints on virtual currencies, moves which are often used as the start to rulemaking and enforcement. [8/12/14]

The state is proposing licensing dealers of virtual currency, including strict anti-money-laundering safeguards and consumer protections. [7/25/14]

The CFPB is reportedly taking a hard look at regulations to govern the use of Bitcoin and other crypto-currencies.  Despite increasing concerns for the risk to consumers, industry experts, however, say that the agency’s authority to regulate digital currency is not clear. [7/9/14]

With any new currency, the question arises, "Should the CFPB regulate it?" However, the jury is out on the benefits of government regulation of Bitcoin because, as one writer explained, its great success might have come from the very fact that it was and is unregulated. Will regulation halt its progress or give it a wider appeal to consumers? [7/8/14]

A GAO report released on June 26 discussed the potential risks and benefits for consumers. According to the GAO, the risks facing consumers include lack of bank involvement (and thus the protections from the FDIC and other insurers), limits on financial recourse in the event that the virtual currency account is hacked, and volatile prices. The report found that addressing the risks associated with virtual currencies such as Bitcoin and other crypto currencies will require interagency collaboration, including a stronger presence from the CFPB. [7/3/14]

Those who are attracted to Bitcoin assuming their transactions aren't trackable by the government may be in for a surprise. [5/23]

Maryland joins in the regulatory chorus warning consumers about the high risks of virtual currency. [5/19]

Citing market fluctuations that have seen Bitcoin's value rise from $100 in July 2013 to more than $1,100 in December 2013, the Connecticut Department of Banking issues a consumer advisory warning of the dangers of virtual currency. [5/13]

Mining Bitcoins is becoming less lucrative, so attacking user's wallets has become the preferred approach of thieves. Experts advise transferring Bitcoins to a "cold wallet," a storage device that is completely offline. [5/5]