Federal Consumer Watchdog Acknowledges Bitcoin’s Benefits and ‘Wild West’ Risks
Consumers have been warned by a federal watchdog about the risks of using cryptocurrencies like Bitcoin. The CPFB (Consumer Financial Protection Bureau) recently said that it will start gathering complaints from people who use products like Bitcoin and online exchanges. The agency released an advisory mentioning that digital currencies are not supported by the government; furthermore, they have volatile exchange rates and are often targeted by scammers and hackers. Unlike bank accounts, deposits that are Bitcoin-based are not federally insured. Bitcoin advocates agreed to CFPB's....
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Following up on an article in which the United States Consumer Financial Protection Bureau (CFPB) was aiming to give bitcoin more attention comes a potentially controversial statement from the Bureau's Director, reports The Hill. The watchdog bureau is waving the flags of caution for those who may be interested in getting involved with the digital currency, or any other cryptocurrency, adding these emerging payment forms carry "significant risks." "Virtual currencies may have potential benefits, but consumers need to be cautious and they need to be asking the right questions," said CFPB....
This morning Douwe Miedema, a reporter with Reuters, is reporting that a U. S Government watchdog has told the U. S. Financial Protection Bureau, a primary Consumer Agency, that they should play a bigger role in protecting and shielding consumers from risks associated with virtual currencies. Reuters have also reported that Federal Regulators have begun to work together to gauge the level of risks associated with cryptocurrencies. This is the first time that a U. S. Government consumer agency has been told to prepare to protect consumers that choose to shop using a currency that was....
The Financial Action Task Force (FATF) has recommended closer monitoring of digital currency exchanges and gateways to counter money laundering and terrorism financing. FATF published its 'Guidance for a risk-based approach to virtual currencies' at a plenary meeting held this week in Brisbane. The 48-page document acknowledges that digital currencies carry several economic benefits such as decreased transaction costs, financial inclusion for those lacking access to banking services and the facilitation of microtransactions. However, they also carry risks of money laundering and terrorist....
Last week's advisory from the US Consumer Financial Protection Bureau (CFPB) warning consumers about the risks of virtual currencies such as bitcoin diligently listed several obvious risks, but simultaneously omitted the very consumer protections provided by certain cryptographic monies. Citing malicious hackers, potentially high mark-up fees, exchange-rate volatility, lack of governmental insurance, and risk of private key loss is laudable given that so few market participants conduct proper due diligence before jumping in to a new alternative. The majority of companies involved in the....
The industry body has accused the government of leaning into narratives about malicious actors and scams, rather than engaging with the blockchain space to establish fit-for-purpose regulation. Blockchain Australia, an association representing the local crypto industry, has warned that the country has fallen behind on the regulatory front due to the undue persistence of a dismissive “wild west” narrative.The association has been proactive in its engagement with the state in recent months, as the government continues to review the future of blockchain and fintech and regulation in the....