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Cyprus Central Bank warns about risks in use of Bitcoin

11 December, 2013

Cyprus Central Bank has warned that using the virtual currency Bitcoin is dangerous.

Replying to a CNA question on the matter, the Central Bank notes that “it considers the use of any kind of virtual money as particularly dangerous, given that it is not under any regulatory system and its operation is unchecked”.

At the same time, other CNA sources say that the government feels that the virtual currency is too risky at present.

While acknowledging that Bitcoin is innovative, the same sources point out that it is not backed up by anything tangible and it also poses many risks.

Anyone wishing to deal in the currency, the sources suggest, should first weigh all possible risks involved.

The matter has been discussed a few years ago at EU level and it was decided at the time that virtual currency systems should not be regulated as such an action would legitimize them, sources explain. Instead authorities should issue warnings but it should be the responsibility of individuals to protect themselves.