DFI, DATCP issue warning to cryptocurrency investors

The Wisconsin Department of Financial Institutions (DFI) and the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) are warning investors of opportunities that sound ‘too good to be true’ in cryptocurrency investments. The agencies state that cryptocurrency can be particularly difficult to evaluate for risks and caution consumers to watch out for scammers and thieves when they invest in cryptocurrency. Cryptocurrency is a computer-based digital currency designed to work as a monetary system wherein individual coin ownership records are stored in a ledger existing in a form of a computerized database. This database uses strong cryptography to secure transaction records, control the creation of additional coins, and verify the transfer of coin ownership. Examples of cryptocurrencies often available through a crypto exchange such as CoinBase or Binance include Bitcoin, Ethereum, Dogecoin, Litecoin, Binance Coin XRP, and Tron. According to the DFI, cryptocurrencies do not fall neatly into the existing state and federal regulatory framework and are more prone to attract scammers.