State regulators in Massachusetts and others around the country are taking a close look at virtual currencies as bitcoin continues to grow in popularity. <\/p>\n
We will be trying to come up with a model law or regulations states can use, said David Cotney, commissioner of the Massachusetts Division of Banks and chairman of the Emerging Payments Task Force. This has gotten a lot of attention, and we want to make sure when we act, we get it right. <\/p>\n
The task force is made up of nine state regulators from around the country, and will look at everything from bitcoin to mobile payments. <\/p>\n
Last week though, the task force held a hearing on bitcoin and other virtual currencies, hearing testimony from bitcoin companies and regulators, include Barbara Anthony, undersecretary of the Massachusetts Office of Consumer Affairs and Business Regulation. <\/p>\n
Anthony said one of the key issues is that average consumers may be interested in bitcoin, but are not aware of some of the risks. <\/p>\n
Consumers and average consumers need to know that there are certain drawbacks to trading in a virtual currency, Anthony said. The kinds of consumer protections that were used to, people have to understand they are not available to virtual currencies. <\/p>\n
Things consumers should be aware of about bitcoin, Anthony said, include volatile worth and the fact there is no central authority that guarantees bitcoins worth. <\/p>\n
You could buy $100 worth of bitcoin right now and over a period of time that value is not going to be $100, Anthony said. <\/p>\n
Cotney said he is not planning on implementing any regulations on bitcoin immediately, but could down the road. <\/p>\n
We will certainly be looking at the efforts of this task force to help guide us, Cotney said. <\/p>\n
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Regulations mulled for bitcoin<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" State regulators in Massachusetts and others around the country are taking a close look at virtual currencies as bitcoin continues to grow in popularity. We will be trying to come up with a model law or regulations states can use, said David Cotney, commissioner of the Massachusetts Division of Banks and chairman of the Emerging Payments Task Force Continue reading