MOSCOW, May 8 (RIA Novosti) – The US Securities and Exchange Commission (SEC) has issued an investor alert outlining the potential risks of Bitcoin and other virtual currencies.
“A new product, technology, or innovation – such as Bitcoin – has the potential to give rise both to frauds and high-risk investment opportunities,” the SEC said in a statement Wednesday.
“Potential investors can be easily enticed with the promise of high returns in a new investment space and also may be less skeptical when assessing something novel, new and cutting-edge,” the statement added.
Previously the SEC warned investors about Bitcoin in the context of a Ponzi scheme. The Financial Industry Regulatory Authority (FINRA) also recently issued a similar alert, and the North American Securities Administrators Association (NASAA) has included digital currency on its list of the top 10 threats to investors.
The SEC’s statement comes shortly after the Combating Terrorism Technical Support Office (CTTSO) launched a program to gain insight into how technology, including digital currencies such as BitCoin, can present a threat to national security.