Europe warning of the dangers of bitcoin

Note that the value of virtual currency can fall at the same rate that increases

The European Banking Authority EBA has warned in a public document the risks to people who buy , have or used as payment the bitcoin virtual currency.
The EBA recognizes the growing popularity of these coins and so reminds consumers the risks specifically remember platforms exchange real money for bitcoins are not regulated by a banking authority and therefore its virtual money will not be accepted as a deposit at traditional banks. "There is a protective standard ," says the EBA , " for financial losses that may occur if you close a home exchange virtual currency."


The document notes that the EBA bitcoin that people have in their virtual wallets can be hacked and stolen , as has happened on several occasions , also warns that the value of this coin can fall at the same speed with which rises even be zero . Also advised people not acquire bitcoins for real money you do not have , that is, asking for loans and reminds them that does not serve as a guarantee of payment from the real world.
" Virtual currency transactions are public, but the owners and beneficiaries of these transactions, no ," says the EBA . "Transactions are largely impossible to measure trace, and offer consumers forex virtual high degree of anonymity . Therefore possible that the network of virtual currency to be used for criminal activities, including money laundering . Such use Report this might affect you , as the competent authority may decide to close trading platforms , which would prevent him from accessing or using the funds I had. "
The EBA also warns of potential tax liabilities of bitcoin . " Possession of virtual currencies may have tax implications , such as VAT or tax on capital gains . You should consider whether tax money in checking account apply in your country when using virtual coins " .
The warning from the European Banking Authority contrasts with the recent report of the Bank of Amerika bitcoin which considers a "serious competitor " in e-commerce and an alternative in those with unstable or very intervened currency countries. " The bitcoin offers an attractive alternative to money in terms of security, transparency of transactions and forgeries ," concluded the investment bank .
China recently advised its banks not trade bitcoins , Germany introduced a tax on that virtual trade and Norway also has recognized as currency, but does impose a tax on the profits with him or relief for losses . One of its citizens , the university Kristoffer Koch, is precismanete , one of the people who has earned gains , since in 2009 invested $ 24 in bitcoins , and today that investment rises to $ 800,000 ( 582,000 euros).
Currently , the bitcoin trading above 900 dollars ( 655 euros) in Mt.Gox , the main house currency exchange , and there are over 12 million bitcoins circulating on the Internet .
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