Under the title “Bitcoins: More Than A Bit Risky,” and with a URL that includes the words “fraud” and “scams,” FINRA has issued an investor warning about Bitcoins.
Briefly, the warning notes that risks of using Bitcoin include:
- Bitcoin is not legal tender;
- platforms that buy and sell bitcoins can be hacked, and some have failed;
- transactions can be subject to fraud and theft;
- deposits are not insured;
- payments are irreversible; and
- law enforcement could shut down or restrict the use of a Bitcoin exchange.
FINRA notes that Bitcoin transactions are highly speculative investments like real estate and gold and should be undertaken with care.