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What is virtual currency? Unlike traditional currency, these alternative currencies are not typically backed by tangible assets, are not issued by a governmental authority and are subject to little or no regulation. The value of virtual currencies may be highly volatile and the concept behind the currency is difficult to understand even for sophisticated financial experts. Investors should be aware that investments that incorporate virtual currencies present very real risks.
The Commission’s Securities Division urges investors not to make substantial investments into this type of risky investment without first considering some important issues. Some common concerns investors should consider:
For more information about virtual currency as an investment, see the Commission’s Investor Alert on initial coin offerings and other crypto-currency related investments.
North American Securities Administrators Association (NASAA)
US Securities and Exchange Commission (SEC)
Commodity Futures Trading Commission (CFTC)
Financial Industry Regulatory Authority (FINRA)
The information provided on this website is not comprehensive, is not offered as legal or investment advice, and is not a substitute for competent legal or financial counsel. The Securities Division provides this information to give you an overview of the topics discussed. You should not rely on the accuracy of this information, but should carefully review all applicable statutes and regulations with the assistance of legal counsel.