Bitcoin risk addressed by Consumer Financial Protection Bureau - WECT TV6-WECT.com:News, weather & sports Wilmington, NC

Bitcoin risk addressed by Consumer Financial Protection Bureau

Posted: Updated:
Additionally the CFBU is now accepting complaints from users experiencing problems with the virtual currency. (Source: MGN Online) Additionally the CFBU is now accepting complaints from users experiencing problems with the virtual currency. (Source: MGN Online)
WASHINGTON, DC (WECT) -

Bitcoin, the virtual currency, is coming under fire from a national protection bureau for the risks associated with spending it.

The Consumer Financial Protection Bureau (CFPB) issued a consumer advisory warning of potential issues with virtual currencies such as unclear costs, volatile exchange rates, the threat of hacking and scams, and that companies may not offer help or refunds for lost or stolen funds.

Additionally the CFBU is now accepting complaints from users experiencing problems with the virtual currency.

"Virtual currencies may have potential benefits, but consumers need to be cautious and they need to be asking the right questions," said CFPB Director Richard Cordray. "Virtual currencies are not backed by any government or central bank, and at this point consumers are stepping into the Wild West when they engage in the market."

Copyright 2014 WECT. All rights reserved.

Powered by WorldNow