The Washington State Department of Financial Institutions has issued a new warning to potential buyers of digital currencies such as bitcoin.
The advisory, entitled “Beware the Next Big Investment”, offers a warning about investing in digital currencies, marijuana-related businesses and binary options.
It reads:
“Digital currency value fluctuates wildly because it is decentralized and often the subject of ‘breaking’ news and rumors.”
The majority of the item focused on the risk of unrealistic investment pitches, including those that seek to intentionally misinform investors.
“Since different countries and jurisdictions have little uniformity on how bitcoin and digital currency is regulated, scammers will take advantage of the confusion and contradictions to misinform potential investors,” the notice says.
The advisory also points to the fluctuating market value of digital currencies, as well as the threat of theft for holders.
“The bottom line: There are many investment opportunities among the above mentioned categories, but before making any decisions with your money, ask questions, and do your homework,” the note concludes.
This warning follows the publication of similar advice last March, and comes amid a heightened period of volatility that has seen the digital currency fluctuate between $300 and $500 over the past few weeks.
Warning image via Shutterstock