Two major U.S. states warn of encrypted currency investment

nOn the Thursday, the U.S. Department of the Idaho Department of Finance issued a risk alert to warn its residents to be careful about cryptocurrency investment, noting that a survey by the North American Securities Regulatory Commission (NASAA) found that 94 % Of state and local securities regulators think digital currencies such as bitcoin involve a high degree of fraud risk. Meanwhile, Alaska also issued a statement urging the public to look cautiously into cryptocurrency investments.n
nTranslation: Clovern
The United States, Idaho and Alaska, respectively, warned of investments involving cryptocurrencies.n
Idaho Department of Finance warned its residents on Thursday to be careful about cryptocurrency investments. The department said a NASAA survey found that 94% of state and local securities regulators think digital currencies such as bitcoin involve a “high degree of fraud risk.”n
Gavin Gee, head of Idaho’s finance ministry, said unsuspecting investors are emboldened by the recent frenzied price swings and speculation surrounding cryptocurrencies and swarmed into areas of investment they do not fully understand.n
Gee said:n
n”The associated cryptocurrencies and investments are high-risk products whose investment performance has not been tested over time and the price volatility has been so violent that, coupled with the high risk of fraud, investing in cryptocurrencies is not suitable for people with low affordability.”n
nCryptocurrencies are vulnerable to cybersecurity holes or hacking, and the extreme volatility of such investments makes them unsuitable for many investors.n
The Treasury also warned investors about common risk signals for investment fraud, including unsolicited offers, unsold sellers, and guarantees for high returns.n
Alaska also issued a statement urging the public to be cautious about investing in cryptocurrencies.n
Kevin Anselm, head of the state’s banking and securities unit, said cryptocurrencies “are not a representative investment.” Local media reported that she stressed that people must understand the risks of these investments, such as hacking or fraud, as well as investor returns.n
Anselm added that reports of residents in Alaska being asked to purchase new cryptocurrencies have risen.n

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