THE PRICE of bitcoin has dipped from its $17,000 weekend high-point as China’s main internet-finance regulator tells local governments to help “guide” bitcoin-mining operations towards an “orderly exit”.
The Utah Division of Securities has warned investors that cryptocurrencies like bitcoin, ethereum and ripple are risky investments, often used for fraud.
The division has released information to warn consumers about schemes that may target individuals’ retirement savings.
Keith Woodwell, director of the Utah Division of Securities said:
“Utah’s reputation as a technically savvy and connected state makes our population ripe for cryptocurrency fraud,” he said. “While it’s a compliment to our population for being plugged into what’s trending, internet hype can lead to rash decisions.
“Things that tend to go up very fast also tend to come down very fast,” Woodwell said. “We see a lot of fraudsters capitalising on this fad that so many people are paying attention to. Scammers are using that greed and the little bit of knowledge that people have to offer bogus investments.”
Bitcoin has slipped to $15,913 after hitting a high of $17,005 on Saturday.
It is not known yet how bitcoin’s price will react to the leaked report that China’s top internet-finance regulator, the Leading Group of Internet Financial Risks Remediation, has issued a notice asking local governments to help bitcoin-mining operations make an “orderly exit” from the business.
The document, currently available through twitter user @cryptovenus, asks local authorities to use price rising measures linked to electricity supply, land use, tax, and environmental protection, to force bitcoin miners to quit the business.
It also asks the local offices to report information about mining facilities in their regions.