Indiana Releases Bitcoin Investor Advisory
Indiana is joining the ever-growing lists of states making comments on bitcoin.
The “Informed Investor Advisory” came in the form of a document entitled “Are You An Informed Investor?” released by The Office of the Indiana Secretary of State [direct link] which essentially echoes sentiments the crypto-currency community has heard time and time again.
Therein, the following points are made:
- Digital currencies are minimally regulated, and if they disappear, they’re likely to be gone without any recourse for the owner.
- Digital currency amount are not in any way backed by the Federal Deposit Insurance Corporation (FDIC).
- Digital currency investments are subject to extreme volatility.
- Investors may rely on unregulated companies with little to no protections in place in the event of fraud, theft, or insolvency (see Mt. Gox).
- Investors must be reliant on a secure, uncompromised computer system to store their bitcoins. A compromised system could see the permanent loss of bitcoin holdings.
The Secretary of State’s final word on the matter: “It pays to do your homework before you invest in any investment opportunity, including virtual currency.”
It’s good advice, really.
Other states that have made comments of this nature with regard to bitcoin and other digital currencies include California, New Mexico, Massachusetts, Florida, and Wisconsin.
There are likely to be more in the weeks and months upcoming.