SECURITIES ADMINISTRATORS URGE CAUTION ABOUT BITCOIN

Canadian authorities have issued a warning about Bitcoin – and products linked to cryptocurrencies.

The umbrella organization for provincial and territorial securities regulators highlights “futures” contracts in its warning – saying that while they may be traded on regulated exchanges – the currency’s high level of risk isn’t for all investors.

The Canadian Securities Administrators chair says the underlying value of “futures” contracts is based on largely unregulated markets – and that makes them much more risky – so registered dealers need to perform their own due diligence – before recommending any cryptocurrency-related products.

Interest in the items has exploded this year as the price of the currency has approached $20,000 U.S. recently – after beginning the year at less than $1,000.

Michael Kramer

About Michael Kramer

Michael is the afternoon news anchor on the New Classical 96.3FM and hosts the program Zero to 1800.