April 29 Investors should consider risks
associated with virtual currencies, including bitcoin, before
trading in them, two U.S. regulators warned on Tuesday.
The warnings are the latest in a string of advisories from
U.S. state regulators, including Nevada and Maryland, as they
look to toughen rules on the use of the controversial
"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)
president, said in a statement on Tuesday. (link.reuters.com/gar88v)
NASAA is a Washington-based group of state securities
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. (link.reuters.com/jar88v)
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
(Reporting by Tanya Agrawal in Bangalore; Editing by Saumyadeb