Bitcoin Forum

http://www.cryptocoinsnews.com/2014/03/19/scared-cyprus-government-issues-bitcoin-warning/

"Bitcoin has seen its popularity go up tremendously in the past year. Some argue that this is due to the worldwide financial crisis. This is proven when looking at specific countries that have been hit harder than others by this disaster. Cyprus being a great example of this.
Bailout deal

The mediterranean island reached headlines last year after several unusual measures were taken to eliminate the national debt. Cyprus agreed to a bailout deal that was set by the European Union. Countries that need help can ask for the EU for help but, in order to get this, are usually pushed to make drastic changes in their policy. In the case of Cyprus, the country’s second largest bank would be closed, and the country imposed a ‘bank deposit levy’ of 6.7% for all accounts under €100,000. Those over were subject to 9.9%. After this, people lost their faith in banks, turning to cryptocurrencies like Bitcoin in the process.

On Tuesday, the cypriotic government issued a new warning concerning the potential dangers associated with digital currencies. The parliament demanded to put the necessary safeguards in place to protect the public. In a joint statement, the ministries of trade and finance and the Central Bank warned that people could lose their money by investing in digital currencies like Bitcoin.
Unfounded warnings

Once again, Mt. Gox was used as a prime example to scare people away from buying Bitcoins. “There is no specific legal protection in the event of an exchange platform losing money or collapsing,” the statement said. Authorities seem to be waiting for events like this to happen so they can spread unfounded statements. As if the risk of losing money on exchanges wasn’t enough, the statement kept going. It also explained that digital currencies could be stolen by hackers while its value could fluctuate rapidly or even be wiped out. On top of that, there was a high risk of  cryptocurrencies being used in criminal activities, including money laundering.

“As a state, we ought to seek the framework of safeguarding all citizens as well as all those who trade in Bitcoin,” Kyriacos Hadjiyiannis of the Democratic Rally Party said. Meanwhile, people must be “extra careful and keep themselves informed before making their choice,” added Angelos Votsis, member of the House of Representatives.

This statement follows a series of events that took place after Cyprus’ financial meltdown. Late last year, the University of Nicosia became the first private university in the world to start accepting Bitcoin as a method of payment. Not so long ago, Neo & Bee opened up in Nicosia. Ever since, this company has partnered up with several companies, including So Easy Stores, LTV and Telemarketing.

It’s clear Bitcoin is on the rise in Cyprus. When people are hit hard by their government, they will start looking for ways to take back what they lost. In this case, we’re talking about financial freedom. The people of Cyprus have turned to Bitcoin and local merchants, heck even one of the national universities, are giving them a chance to use the cryptocurrency in everyday life. Unfounded government warnings show that authorities fear Bitcoin. Maybe if they wouldn’t have made such a mess of it all in the first place, there would be nothing to be afraid about."

More fear!

My $.02..;)

That isn't an unfounded statement, it is true.

Cyprus has enacted draconian capital controls in order to try and keep their financial system afloat.  It's only natural they would be terrified of crypto-currencies.  Bitcoin can be used to send wealth out of the country, which is currently illegal to do in any significant quantity.

Do you have reference to the Greek version of this?

The report seems to have originated in the Cyprus Mail but I can find no Greek language version.

My $.02.

;)

The claim isn't that it's an unfounded statement. It's that by saying something like this, they are setting up for issuing an "I told you so"-like comeback after something "bad" happens in the Bitcoin world, followed by other unfounded statements that we've heard before, like "MtGox went down, we told you exchanges are always dangerous."

Exchanges could be run transparently for their users. In fact, it would appear some of them are trying to do exactly that.

After performing a forced confiscation, in other words, stealing funds from bank account holders; I can't see anyone taking them seriously.

What kind of fool would put their money in a Cyprus bank at this point?

sure it is, and banks are a much safer place, says the CYPRUS government. Comedy gold, again... :D

Perhaps worthy to link another thread here:

https://bitcointalk.org/index.php?topic=160292.0

The citizens already dislike their government. I think this only adds fuel to the fire and supports Bitcoin.

I strongly suspect that these "warnings" come in very low volume and are targeted to a very selective audience that probably already heard of Bitcoin.

I don't know why the hell you guys are interpreting this as bad...everything they said is absolutely true and are facts that the public should be aware of. This indicates nothing about the government's stance on Bitcoin...they just want people to know. jesus christ

LOOOOOOOOL...


cyprus sh*ts on bitcoins, while their banks collapse?

ROFLing

This will get more interesting when the US governmentunnamed-source shares the identities of the violating Cypatriots from the Mt.Gox heistinvestigation with the Cyprus enforcement authorities.

Who should be scared again?

To protect the public we must also protect the children;
Please keep track of what your kids do with their devil coins.   ::)


Once again, Mt. Gox was used as a prime example to scare people away from buying Bitcoins.
grrrrrrrrrrrrr.

Me neither that's why I was asking.

I love that it's always under the guise of "Protecting us from harm" ... that's cute!

-B-

Well, they are from the government and they are here to help you!

My $.02.

;)