US States Issue Warnings Over Cryptocurrency Investments

The American states of Idaho and Alaska have both issued warnings over investments involving cryptocurrencies.

Idaho’s Department of Finance warned its people on Thursday to deal cryptocurrency investments with caution. It said that a survey by the North American Securities Administrators Association (NASAA) has reported that 94 percent of state and provincial securities regulators believe that bitcoin and other digital currencies involve “high risk of fraud.”

Gavin Gee, director of the Idaho Department of Finance, said that unsuspecting investors get tempted by the recent wild price fluctuations and speculation surrounding cryptocurrencies and rush into investments that they don’t understand fully.

Gee stated:

“Cryptocurrencies and investments tied to them are high-risk products with an unproven track record and high price volatility. Combined with a high risk of fraud, investing in cryptocurrencies is not for the faint of heart.”

Cryptocurrencies are susceptible to cybersecurity breaches or hacks and the high volatility of such investments makes them unsuitable in sizable amounts for many investors, the note stated…

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