FMA in Austria Issues Warning against Fradulent Virtual Currency Schemes
The FMA in Austria has advised people to take extreme caution when it comes to investing in cryptocurrency related schemes. Austrian finance watchdog Financial Market Authority (FMA) is a bit late to the game. The regulatory body has issued a warning against the use of virtual currencies, including Bitcoin. The latest warning is similar to the words of caution used by various central banks and government institutions across the world. While rest of the regulatory and governance bodies issued the warning way back in 2014, FMA has decided to do at a time when Bitcoin is gaining popularity....
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The Reserve Bank of India has recently issued a notification against the use of Bitcoin, stating various risks associated with it. The traditional banking and financial sector is filled with hypocrites. On one hand, these institutions want to implement the distributed ledger technology introduced by Bitcoin, whereas on the other they don’t want to accept Bitcoin for what it is. The Reserve Bank of India has just proven it by issuing a warning against the use of Bitcoin. It is the second such warning against Bitcoin issued by the Reserve Bank of India. The recent notification follows the....
A member of the Central Bank of Estonia has issued a warning to the country's citizens about bitcoin and other virtual currencies. Mihkel Nõmmela, who heads the bank's Payment and Settlement Systems Department, called bitcoin a "problematic scheme" in an email to Bloomberg. Nõmmela echoed concerns raised at this week's bitcoin hearings in New York, noting that all risks in the system are assumed by the user, and that consumers have nowhere to turn for support. He said: "Already there have been cases where the owner of a trading virtual money has suddenly ceased to exist, so customers have....
The European Banking Authority (EBA) has issued a warning on potential risks related to virtual currencies, but the warning is largely focused on the possibility of fraud and theft. The authority points out that consumers are not protected by union regulation when they buy, trade or hold virtual currencies such as bitcoin. In addition, the regulator warns that there is no guarantee that currency values will remain stable. The EBA was apparently prompted to issue the warning due to a sudden increase in virtual currency trading and the fact that virtual currencies are constantly in the....
In an interview, Lt. Col. Nguyen Thi Thu Hang of Vietnam Police speaks about the lack of regulations and fraudulent investment schemes plaguing the country. Virtual currency trading is a lucrative activity, which comes with its own risks. If not chosen properly, the trading and investment platforms themselves may pose a much greater risk than the volatility associated with cryptocurrencies. The increasing number of virtual currency based Ponzi schemes that promise huge returns have got law enforcement agencies concerned. These schemes are prevalent across the globe, attracting millions of....
Another day, another warning on the perils of getting involved with digital currency from a central bank. This time around it's the Central Bank of Trinidad and Tobago, who's issued the following warning on the use of digital currencies, as reported by the print version of the Guardian TT (found here): Potential users of this product must be aware of the risks involved in investing in virtual currencies as regulators seek to establish appropriate frameworks to ensure the continued safe operation of the payments system and the smooth conduct of monetary policy. On the topic of regulation,....