EBA warns investors about extra risk of virtual currencies

Thursday 19 December 2013 | 08:59 CET | News
The European Banking Authority (EBA) has issued a warning to highlight the possible risks you may face when buying, holding or trading virtual currencies such as Bitcoin. Virtual currencies continue to hit the headlines and are enjoying increasing popularity. However, investors need to be aware of the risks associated with virtual currencies, including losing their money. No specific regulatory protections exist that would cover these people for losses if a platform that exchanges or holds your virtual currencies fails or goes out of business. 

While the EBA is currently assessing all relevant issues associated with virtual currencies, in order to identify whether virtual currencies can and should be regulated and supervised, investors or would-be investors are advised to familiarise themselves with the risks associated with virtual currencies. The EBA's statement came about a week after a similar warning from De Nederlandsche Bank, the central bank of the Netherlands and a few days after another from the People's Bank of China.

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