The US Consumer Financial Protection Bureau (CFPB) released an advisory on the risks of virtual currencies. The advisory was issued two months after the Government Accountability Office requested that the CFPB look more closely at the virtual currency industry. The CFPB has also begun accepting complaints from virtual currency users regarding such products and services. Among other risks, the advisory discussed virtual currency’s lack of protections provided by traditional government-insured banks, the threat from hackers and other fraudsters, and the costs and security measures needed to use such virtual currencies. The virtual currency advisory was issued as part of the CFPB’s overarching mandate, which includes the consideration of consumer protection issues related to emerging technologies. 

Click here to read the advisory.