San Francisco Fed Outlines Virtual Currency Risks
The Federal Reserve Bank of San Francisco (FRBSF) has published an article covering the risks of bitcoin and other virtual currencies. The article appeared in Community Banking Connections, a supervision and regulation resource by the Federal Reserve System for community banks: banks with less than US$1 billion in assets on their balance sheets. The 1500-word article, authored by FRBSF Director Wallace Young, presents a broad overview of the cryptocurrency space and industry. Targeted at community banks – comprising roughly 94% of all banks in the United States – it explains what....
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On Tuesday the Reserve Bank of India (RBI) issued a statement warning the public against the use of virtual currencies. The bank cautioned users, holders and traders of virtual currencies about the potential financial, operational, legal, customer protection and security-related risks they are exposing themselves to. The bank pointed out that it has been keeping a close eye on developments in the virtual currency world, including bitcoins, litecoins, bbqcoins, dogecoins and other altcoins. "The creation, trading or usage of VCs including Bitcoins, as a medium for payment are not authorised....
In an effort to warn the public about the risks associated with virtual currencies, USA.gov published a list of Five Things You Should Know About Virtual Currencies. The article aims to simplify what virtual currencies are all about and why people should think about the risks involved before choosing to invest in it. It defines virtual currencies as a digital form of money that can be used for purchasing goods and services typically online and can also be exchanged for other currencies such as the U. S. dollar. Risks of Virtual Currencies. The article also warned that these types of....
Singapore has seemingly been a utopia for new bitcoin ATM launches, but that doesn't mean it's a free-for-all. The Monetary Authority of Singapore released a statement on Thursday indicating plans to regulate virtual currency intermediaries. The reason? No surprise here: to address potential money laundering and terrorism financing. The statement outlines that any intermediaries that facilitates that buy, sell, or allow the exchange of digital currency for fiat currency shall first verify the identity of their customer. These outfits are also expected to report suspicious activity to....
The Monetary Authority of Singapore (MAS) is to regulate virtual currency intermediaries in order to address potential money laundering and terrorist financing risks. A statement from MAS said the anonymous nature of virtual currency transactions leave them particularly vulnerable to these risks. In response, MAS is introducing regulations requiring intermediaries that operate virtual currency exchanges and vending machines to verify the identities of their customers. They will also be required to report any suspicious transactions to the Suspicious Transaction Reporting Office. Ong Chong....
We've seen plenty of times central banks warn consumers of the risks of getting involved with digital currencies, but the Dutch Central Bank is taking a different approach. In astatement published on the central bank's website, De Nederlandsche Bank (DNB) is warning banks and payment institutions of the integrity risks that virtual currencies bear. The central bank points out that there exists a significant level of anonymity when it comes to digital currencies (like bitcoin, for example). The release (which is interestingly dated June 5, 2014) says (translated using Google): In....