Cryptocurrency: Residents from all around the state who are interested in making financial investments are being warned to be careful about where they put their money.
The Oregon Division of Financial Regulation (DFR) is encouraging investors in the state to diversify their portfolios and educate themselves about the potential dangers associated with investing in goods that are mostly unregulated, such as cryptocurrencies.
Some of these financial product offers, including but not limited to money transmitters and securities offerings, are registered and licensed with the DFR. This section has conducted investigations against a number of cryptocurrency companies, and it is continuing to keep a close eye on the market.
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State Advisory Warns Investors to Exercise Caution With Cryptocurrency
A cryptocurrency is described as “virtual or digital money that takes the shape of tokens or coins,” according to a general description that may be found online.
Digital assets that are not backed by any central bank or government are known as cryptocurrencies. Digital currency exchanges are primarily utilized for their purchases, usage, storage, and trading, all of which are done electronically.
They can be exchanged for other products and services, moved from one person to another, or held for the purpose of investment all at the same time.
“It is vital to know the risks involved with cryptocurrencies or any investment opportunities,” said TK Keen, administrator of the DFR. “Knowing the hazards involved with cryptocurrency or any investment opportunities.”
“There is no such thing as a completely risk-free investment opportunity, and you should always do your research before putting your money somewhere.” This is especially important to keep in mind while dealing with cryptocurrencies.
Everyone who is considering investing in cryptocurrencies ought to heed the lesson that may be learned from the failure of FTX, the third largest cryptocurrency exchange in the world, which caused total losses in the billions of dollars for about one million of its users and investors.
Keen stated that given the current state of affairs, investing in cryptocurrencies carries an extraordinarily high level of risk. It is essential that you do not put all of your assets into one basket or invest more money than you can afford to lose in the event that your investment fails.
The Federal Deposit Insurance Corporation (FDIC), which has recently published a fact sheet defining when an account is considered insured, does not normally protect cryptocurrency accounts.
When it comes to digital currency and nonfungible tokens (NFTs), which are frequently linked to digital works of art, photos, or videos, the Department of Forestry strongly recommends that residents of Oregon adhere to the following guidelines:
Investigate each of these kinds of investments with great care. The majority of these so-called “investment opportunities” are based on pure speculation.
Make sure that you fully comprehend what it is that you are purchasing, the value of the item that you are purchasing, the rationale behind the valuation, and the ease with which you can sell the investment if you decide that you want to get your money back before you engage in a transaction.
— BitcoinAgile (@bitcoinagile) November 25, 2022
If you want to send bitcoins to another person, you should do so through a digital currency exchange that has been approved by the state. According to Oregon law, businesses that facilitate the transfer of virtual currency from one individual to another must obtain a license as money transmitters.
Companies dealing in the exchange of digital currencies that buy or sell cryptocurrencies from their own inventories are exempt from the requirement to obtain a license.
Spending money that you need not be done. Because of the high degree of volatility exhibited by the digital currency and NFT markets, it is not advisable to invest money that is required for essential expenditures such as purchasing food, housing, or transportation in cryptocurrencies.
The Department of Financial Regulation (DFR) issued a previous advisory in the month of October, in which it issued a warning about a number of online scams that pose as “education” and “guidance” to potential investors but are, in fact, steering schemes.
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The Department of Financial Regulation (DFR) explained in a press release that “these schemes make numerous misrepresentations about the investment and its rate of return through TikTok and Discord,” which makes it difficult to later track down these misrepresentations and the individuals who are involved.
People who have recently suffered financial losses as a result of their investments in cryptocurrencies or stocks are frequently targeted by investment offerings.
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