For instance, in July 2013, the SEC brought legal action against an operator of a Bitcoin-related Ponzi scheme. Fraud risk: Even with the security measures inherent within a blockchain, there are still opportunities for fraudulent activity. In 2019, prime dealer and trading platform SFOX announced it would be able to offer Bitcoin investors FDIC insurance, but only for the portion of transactions involving cash. Some exchanges provide insurance through third parties. Insurance risk: Bitcoin and cryptocurrencies are not insured through the Securities Investor Protection Corporation (SIPC) or the Federal Deposit Insurance Corporation (FDIC).Bitcoin exchanges are entirely digital and-as with any virtual system-are at risk from hackers, malware, and operational glitches. Rather, they buy and sell Bitcoin and other digital currencies on popular online markets, known as cryptocurrency exchanges. Security risk: Most individuals who own and use Bitcoin have not acquired their tokens through mining operations.Regulatory risk: The lack of uniform regulations about Bitcoin (and other virtual currencies) raises questions over their longevity, liquidity, and universality.
0 Comments
Leave a Reply. |