Provides Consumers and Investors with Factors to Consider
Washington, DC—The Conference of State Bank Supervisors (CSBS), through its Emerging Payments Task Force, and the North American Securities Administrators Association (NASAA) released today Model State Consumer and Investor Guidance on Virtual Currency.
This model consumer guidance is designed to assist state regulatory agencies in providing consumers with information about virtual currency as well as what factors consumers should consider when transacting with or investing in virtual currencies. The model guidance explains what virtual currency is, provides a list of risks consumers should consider when investing, and reminds consumers to research what sort of regulation, if any, would apply to virtual currency transactions or investments in their state.
- Specifically, the guidance encourages consumers to consider the following before investing in virtual currency:
- Do your homework.
- Virtual currencies and companies dealing in virtual currencies may or may not be regulated.
- Virtual currencies can be stolen or otherwise subject to cybercrime.
- Virtual currencies are volatile in value.
- Virtual currencies have been connected to criminal activities.
- Virtual currency transactions may be taxable.
The Model State Consumer Guidance on Virtual Currency can be read here.
In February 2014, state regulators, through CSBS, launched the Emerging Payments Task Force to take a comprehensive look at the changing payments landscape. The Task Force will seek to identify opportunities for a coordinated state approach to payments issues as well as promote compliance, security, and protection for consumers.