Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
CFPB Gets Real About Bitcoin Risks
Consumers should be cautious when using bitcoin and alert the U.S. Consumer Financial Protection Bureau (CFPB) to any problems with the virtual money, the agency said last month after a government watchdog this summer urged the CFPB to engage more on the currency.
In a six-page consumer advisory on bitcoin and other virtual currencies, the CFPB warned that the monies are susceptible to hackers and fraudsters, can cost more to use than cash or credit cards, and have fewer protections than traditional money. See, “Risks To Consumers Posed By Virtual Currencies.”'
Bitcoin and other similar currencies aren't legal tender in any jurisdiction and the U.S. government doesn't insure them, the advisory noted.
Along with the notice, the CFPB announced that individuals who may have trouble with the monies can submit a complaint to the agency online through www.consumerfinance.gov/complaint. The agency will use the grievances to “better understand the virtual currency market and its effect on consumers” and take consumer protection law enforcement and policy steps, if warranted, according to an August 11 news release entitled “CFPB Warns Consumers About Bitcoin.”'
In June, the U.S. Government Accountability Office (GAO), the investigative arm of Congress, said in a report on the consumer protection challenges associated with virtual currencies that the CFPB hasn't played an active role in multiagency talks on the monies, which could face regulation from several agencies.'Citing the CFPB's focus on consumer protection for financial products and services, the GAO called on the agency to participate more in the discussions.
“Virtual currencies may have potential benefits, but consumers need to be cautious and they need to be asking the right questions,” CFPB director Richard Cordray said in a statement on his agency's advisory. “Virtual currencies are not backed by any government or central bank, and at this point consumers are stepping into the Wild West when they engage in the market.”
Jim Harper, global policy counsel for The Bitcoin Foundation (bitcoinfoundation.org), an advocacy group for the digital currency, said warnings about the money aren't new.
“There are consumer risks around new technologies, and even-keeled educational material from government agencies can help make consumers aware and savvy,” he said in a statement.
Andrew Ramonas is a Reporter for Corporate Counsel, an ALM sibling of e-Commerce Law & Strategy.
Consumers should be cautious when using bitcoin and alert the U.S. Consumer Financial Protection Bureau (CFPB) to any problems with the virtual money, the agency said last month after a government watchdog this summer urged the CFPB to engage more on the currency.
In a six-page consumer advisory on bitcoin and other virtual currencies, the CFPB warned that the monies are susceptible to hackers and fraudsters, can cost more to use than cash or credit cards, and have fewer protections than traditional money. See, “Risks To Consumers Posed By Virtual Currencies.”'
Bitcoin and other similar currencies aren't legal tender in any jurisdiction and the U.S. government doesn't insure them, the advisory noted.
Along with the notice, the CFPB announced that individuals who may have trouble with the monies can submit a complaint to the agency online through www.consumerfinance.gov/complaint. The agency will use the grievances to “better understand the virtual currency market and its effect on consumers” and take consumer protection law enforcement and policy steps, if warranted, according to an August 11 news release entitled “CFPB Warns Consumers About Bitcoin.”'
In June, the U.S. Government Accountability Office (GAO), the investigative arm of Congress, said in a report on the consumer protection challenges associated with virtual currencies that the CFPB hasn't played an active role in multiagency talks on the monies, which could face regulation from several agencies.'Citing the CFPB's focus on consumer protection for financial products and services, the GAO called on the agency to participate more in the discussions.
“Virtual currencies may have potential benefits, but consumers need to be cautious and they need to be asking the right questions,” CFPB director Richard Cordray said in a statement on his agency's advisory. “Virtual currencies are not backed by any government or central bank, and at this point consumers are stepping into the Wild West when they engage in the market.”
Jim Harper, global policy counsel for The Bitcoin Foundation (bitcoinfoundation.org), an advocacy group for the digital currency, said warnings about the money aren't new.
“There are consumer risks around new technologies, and even-keeled educational material from government agencies can help make consumers aware and savvy,” he said in a statement.
Andrew Ramonas is a Reporter for Corporate Counsel, an ALM sibling of e-Commerce Law & Strategy.
Generative AI and the 2024 Elections: Risks, Realities, and Lessons for Businesses
GenAI's ability to produce highly sophisticated and convincing content at a fraction of the previous cost has raised fears that it could amplify misinformation. The dissemination of fake audio, images and text could reshape how voters perceive candidates and parties. Businesses, too, face challenges in managing their reputations and navigating this new terrain of manipulated content.
How Secure Is the AI System Your Law Firm Is Using?
What Law Firms Need to Know Before Trusting AI Systems with Confidential Information In a profession where confidentiality is paramount, failing to address AI security concerns could have disastrous consequences. It is vital that law firms and those in related industries ask the right questions about AI security to protect their clients and their reputation.
Pleading Importation: ITC Decisions Highlight Need for Adequate Evidentiary Support
The International Trade Commission is empowered to block the importation into the United States of products that infringe U.S. intellectual property rights, In the past, the ITC generally instituted investigations without questioning the importation allegations in the complaint, however in several recent cases, the ITC declined to institute an investigation as to certain proposed respondents due to inadequate pleading of importation.
Authentic Communications Today Increase Success for Value-Driven Clients
As the relationship between in-house and outside counsel continues to evolve, lawyers must continue to foster a client-first mindset, offer business-focused solutions, and embrace technology that helps deliver work faster and more efficiently.
Warehouse Liability: Know Before You Stow!
As consumers continue to shift purchasing and consumption habits in the aftermath of the pandemic, manufacturers are increasingly reliant on third-party logistics and warehousing to ensure their products timely reach the market.