Pennsylvania’s Department of Banking and Securities Identifies Digital Currencies as ‘Top Emerging Threat to Investors’

The Pennsylvania Department of Banking and Securities, issued a note identifying the ‘top emerging threats facing investors in 2015,’ where the state agency warns investors of the risks associated with digital currencies.
“We are living in an age where traditional financial and investing relationships are being transformed rapidly and sometimes in confusing fashion by technology and innovation,” said Glenn E. Moyer, Secretary of Banking and Securities, in a statement.
“It is especially important that investors fully understand where they are putting their money, and with whom they are investing it.”
The North American Securities Administrators Association (NASAA), of which the Pennsylvania Department of Banking and Securities is a member, compiled the said list that includes:
Binary Options; Marijuana Industry Investments; Stream-of-Income Investments; Digital Currencies and Cybersecurity Risks. On digital currencies, the report explains that while cryptocurrencies, most particularly Bitcoin, have been emerging as trendy way to pay for goods and services, there are numerous risks associated to the trading and the use of digital currencies, including volatility, greater anonymity, and the threats posed by hackers. “Unscrupulous promoters may be attempting to capitalize on this popularity by illegal offering securities tied to digital currencies,” continued the report.

This post was published at Coin Telegraph on 2014-11-17.