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Georgia Secretary of State Warns Investors to be Cautious with Virtual Currencies
Atlanta, GA - May 21, 2014
Georgia Secretary of State and Securities Commissioner Brian P. Kemp is cautioning Georgians to consider and appreciate the risks if they intend to invest in, or otherwise use, virtual currencies. Virtual currencies include digital or crypto-currencies such as Bitcoin.
Virtual currency is an electronic medium of exchange that, unlike real money, is not controlled or backed by a central government or central bank. These currencies can be bought or sold through virtual currency exchanges, used to purchase goods or services where accepted, and are stored in an electronic wallet, also known as an “e-Wallet.” An e-Wallet is a digital system that allows payments online via a computer or mobile device such as a smartphone.Georgia businesses, consumers, and investors should consider all of the following risks, and more, before active involvement with virtual currencies:
This advisory has been issued in conjunction with the North American Securities Administrators Association (NASAA). NASAA’s full alert, which provides a more comprehensive discussion of virtual currencies and contains numerous links to useful resources, can be found here
The U.S. Securities and Exchange Commission's Office of Investor Education and Advocacy has also issued an alert regarding virtual currencies, and the use of them in the context of Ponzi schemes. The SEC's alert can be found here.
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