Albanian Bank: Be Careful With Virtual Coins

Virtual coins (MV) currently existing are digital representation of a value that is neither named nor guaranteed by a central bank, or public authority, and have no legal status of currency or money.

“They are extremely dangerous, and are generally not covered by embedded active and not regulated by EU legislation; hence, they do not offer consumers legal protection. Authorities express concern over the fact that a growing number of consumers are buying MV, especially with the expectation that the value of the MV will continue to rise, without being aware of the high risk that they could lose the money invested”, reportedly in Albania's Co-operation Report.

According to this Bank, coins such as Bitcoin, Ripple, Ether, and many others have recently suffered many fluctuations, which means that their prices have had significant fluctuations every day.

Bitcoin's “Vlera rose markedly in 2017, up from about $1,000 in January to over $16,000 in mid-December, and then dropped by almost 70% of the value, to $5,000 early in February. Recently, it has recovered around 40% of the lowest value it scored, and is currently traded at around $7,000. Total market capitalisation of the 100 largest MVs is thought to exceed the equivalent of $330 billion worldwide today”, the Bank states.

Why is MV buying dangerous for consumers?

The AME warns consumers that MVs can be extremely dangerous and are usually extremely speculating. If you buy an MV, you should be aware that there is a great risk of losing a large sum, or even the whole amount, of invested money.

When you buy MV, or financial products that bring direct exposure to MV consumers, you are exposed to a high number of risks, such as extreme price fluctuation, lack of legal protection, lack of price transparency, etc.