America’s Security and Exchange Commission Warns about Virtual Currencies

An alert has been issued by America’s Security and Exchange Commission regarding virtual online currencies.  They want to warn users to think twice about using virtual/digital currencies, as they believe they have unique risks.

They highlighted a couple of the main risks, which included the fact that they are not backed by the government or any banks.  This means that they are not covered by their insurance policies and; therefore, they could not help you recover any losses.  They also pointed out that virtual currencies are not strictly regulated and policed, so users must be extremely vigilant when they use them.

A virtual currency only exists in cyberspace and; therefore, does not exist in coin or paper form like traditional money. At the time of writing there are over 80 different virtual currencies on the market, the most popular being Bitcoin.