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Massachusetts: Bitcoin fails the smell test

The regulators from the US state of Massachusetts think the nature of bitcoin is completely speculative, according to a statement published by CNBC.

The Massachusetts Secretary of the Commonwealth, William Galvin, says bitcoin does not pass the smell test. Galvin warned: “Bitcoin is subject to manipulation, because no one can explain it, no one can control it.”

Galvin’s statement joins many similar opinion coming from other US regulatory bodies who warned the investors about the potential risks associated with the cryptocurrencies. At the beginning of this month, both the SEC (Securities and Exchange Commission) and the FINRA (Financial Industry Regulatory Authority) issued similar warning to the investors.

This is not the first statement regarding bitcoin coming from Galvin. At the beginning of December, he warned the public of the bitcoin fever. Galvin said to CNBC he was currently not cooperating with other state regulators regarding this topic.

Galvin pointed out seven points which the investors should take in consideration when it comes to investing in bitcoin. Among them are the wild fluctuations of the price, the incapacity to recuperate the funds, etc.

Galvin also looked back on the warning from other regulators: “It seems we all agree this is a problem.” Furthermore, the Secretary expressed worries about other activities related to the cryptocurrencies, such as the Initial Coin Offerings (ICOs).

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