The local reports from Massachusetts claim that state regulators are mulling a plan to bring Bitcoin under regulation. The state of Massachusetts is though not alone that feels that Bitcoin should be brought under the law as its popularity is growing up every passing day and the risks regarding investment have gone too up as well.
Various other state governments in the US have already shown their concern about Bitcoin; Massachusetts is a new entrant in it. According to David Cotney, commissioner of the Massachusetts Division of Banks and chairman of the Emerging Payments Task Force the state is trying to come up with a model law or regulations.
He also added that as Bitcoin has gotten a lot of attention, and the regulatory body wants to make sure when it acts, it gets it right, any action will come after a lot of thought and planning. The reports say that the task force is made up of nine state regulators from around the country, and will look at everything from Bitcoin to mobile payments.
The state government has been busy with initiative to have a hold on the digital currency and in that regard during the last week the task force held a hearing and got testimony from Bitcoin companies and regulators like Barbara Anthony, undersecretary of the Massachusetts Office of Consumer Affairs and Business Regulation.
Bitcoin is Extremely Volatile and Customers Must Know this fact says Barbara Anthony
Barbara Anthony admitted that one of the key issues is that though average consumers may be interested in the digital currencies, they are not aware of some of the risks and for that simple reason they must be taught and be educated about the same. She says that there are certain drawbacks to trading in a virtual currency.
According to Anthony the kinds of consumer protections that the regulator used to have earlier, people have to understand they are not available to virtual currencies. The foremost important fact that consumers must have is that Bitcoin is extremely volatile and there is no central authority that guarantees its worth.
She cites an example wherein she says that if some customer buys $100 worth of Bitcoin right now, he does not know what will happen to its value whether it will fall dramatically or will go to new heights. In similar views, Cotney said he is not planning on implementing any regulations on Bitcoin immediately, but cannot rule it out in the future.
To contact the reporter of this story: Deepak Tiwari at email@example.com