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State regulators issue virtual currency warning

  • Associated Press
  • May 1, 2014 - 4:51 AM

MADISON, Wis. — Wisconsin financial regulators are warning consumers and businesses about the risks of virtual currency, like bitcoin.

Virtual currency can be bought or sold through virtual currency exchanges and used to purchase goods or services where accepted. Bitcoins, created in 2009, are used for transactions across borders without third parties such as banks and have become a popular investment.

The Wisconsin Department of Financial Institutions Consumers says those considering investing in virtual currency should know that its use may be unregulated, they are highly volatile in value, and can be stolen or subject to cybercrime.

State regulators say investors have to rely upon the strength of their own computer security systems, as well as security systems provided by third parties, to protect the theft of virtual currency.

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