US consumer protection bureau offers advice on Bitcoin

[desticy]

New York - The US government has issued an advisory that warns about the risks that Bitcoins and other virtual currencies pose to consumers.

The six-page advisory published by the Consumer Financial Protection Bureau tells consumers what they should consider before deciding to use a virtual currency.

For example, it advises consumers to investigate the seller of virtual currencies before buying and to understand what their rights would be if the seller fails to deliver a purchase.

A virtual currency exchange operating in the United States is required to register with the US Financial Crimes Enforcement Network, which is part of the US Treasury Department, as a money services business, the advisory says.

But registration does not assure that an exchange is trustworthy.

The agency warns about the danger of attacks by hackers, extreme fluctuations in values, fewer protections, scams and hidden costs.

Bitcoin has existed since 2009. The currency is used primarily in Internet commerce, but is seen by proponents as having potential to create new services in markets that have been hamstrung by weak currencies.


http://www.nationmultimedia.com/breakingnews/US-consumer-protection-bureau-offers-advice-on-Bit-30241877.html

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[BitCoinNutJob]

Preparing the noobs before we go mainstream, i think these things are a positive sign.

[catlinhappy]

New York - The US government has issued an advisory that warns about the risks that Bitcoins and other virtual currencies pose to consumers.

The six-page advisory published by the Consumer Financial Protection Bureau tells consumers what they should consider before deciding to use a virtual currency.

For example, it advises consumers to investigate the seller of virtual currencies before buying and to understand what their rights would be if the seller fails to deliver a purchase.

A virtual currency exchange operating in the United States is required to register with the US Financial Crimes Enforcement Network, which is part of the US Treasury Department, as a money services business, the advisory says.

But registration does not assure that an exchange is trustworthy.

The agency warns about the danger of attacks by hackers, extreme fluctuations in values, fewer protections, scams and hidden costs.

Bitcoin has existed since 2009. The currency is used primarily in Internet commerce, but is seen by proponents as having potential to create new services in markets that have been hamstrung by weak currencies.


http://www.nationmultimedia.com/breakingnews/US-consumer-protection-bureau-offers-advice-on-Bit-30241877.html

This is an encouraging update for all bitcoiners,simply put its as if the government is realizing the benefits of the bitcoin concept gradually.

[zolace]

yeah this update is quite good, I dont see any bad in this update. It dont look like an outright attack on it, just a simple warning that all users that get involved in alt coins or bitcoins should be cautious.

[Jamacn]

Preparing the noobs before we go mainstream, i think these things are a positive sign.

I'm that noobs

[LiteCoinGuy]

Preparing the noobs before we go mainstream, i think these things are a positive sign.

I'm that noobs

no, you are an early adopter 

[melisande]

New York - The US government has issued an advisory that warns about the risks that Bitcoins and other virtual currencies pose to consumers.

The six-page advisory published by the Consumer Financial Protection Bureau tells consumers what they should consider before deciding to use a virtual currency.

For example, it advises consumers to investigate the seller of virtual currencies before buying and to understand what their rights would be if the seller fails to deliver a purchase.

A virtual currency exchange operating in the United States is required to register with the US Financial Crimes Enforcement Network, which is part of the US Treasury Department, as a money services business, the advisory says.

But registration does not assure that an exchange is trustworthy.

The agency warns about the danger of attacks by hackers, extreme fluctuations in values, fewer protections, scams and hidden costs.

Bitcoin has existed since 2009. The currency is used primarily in Internet commerce, but is seen by proponents as having potential to create new services in markets that have been hamstrung by weak currencies.


http://www.nationmultimedia.com/breakingnews/US-consumer-protection-bureau-offers-advice-on-Bit-30241877.html

This advice is like a cautious statement for investors on the BTC network.

[Fabrizio89]

Well, first it was from banks, now it's from the government. A big step and there's nothing wrong with it, in fact this was to be expected since they have no control over it and everything they can do is to be sure they cannot be blamed if something happens to citizens money, it's like they can wash their hands and give people some freedom about dealing with it.

[Mars not Moon]

That's a good news that bitcoin is coming into mainstream and govt is taking interest in bitcoins.

Thanks for the share.

[oceans]

This is great to see and it's great to see that they are taking a positive attitude towards it and giving people who are already not too familiar with bitcoin pointers that they need for times when they may be interested in using bitcoin. It's a tough world when getting involved with bitcoin so knowing that there is information out there for those is a big step. I was expecting the government to try and turn people away from bitcoin but knowing they are not doing this is good, they are pretty much just covering their own backs and ensuring people know that they can not turn to them when things go wrong.

[itsAj]

Preparing the noobs before we go mainstream, i think these things are a positive sign.

I'm that noobs

no, you are an early adopter 

If he does not understand how to properly use and secure bitcoin then he really should be considered to be a "noob" as he is likely not able to prevent himself from getting scammed by others. This is one thing that the CSFB is trying to do by educating people about how to prevent them from getting scammed.

[Swordsoffreedom]

In other words
Don't buy it but if you do were not going to walk you through it but we will give you some tips on how to be better protected.
All in all not a bad warning not a good warning but just them being cautious and telling users that they should be careful.

[barbarousrelic]

Sound advice here from the CFPB.

I don't want to be the "I told you so" guy, but I never trust any Bitcoin business to hold my money for any extended length of time. I had used MtGox to buy Bitcoins for years and immediately withdrew at every earliest opportunity.

[Timetwister]

New York - The US government has issued an advisory that warns about the risks that Bitcoins and other virtual currencies pose to consumers.
http://www.nationmultimedia.com/breakingnews/US-consumer-protection-bureau-offers-advice-on-Bit-30241877.html

The government against a currency that they don't control? Wow, who would expect that?