In Portugal, Europe, the Bank of Portugal issued an official warning on 03/10/2014 concerning the risks of virtual currency, like bitcoin.
The Portuguese supervisor highlights the risks of the virtual money, considered unsafe, underlining that it is not regulated nor supervised by any national or European authority of the financial system.
With the first bitcoin ATM installed in 04/10/2014 at a Lisbon theatre, it is now possible to exchange euros and bitcoin. The Bank of Portugal alerts, however, that said ATM is not part of the Portuguese official payment system.
Considering that there is no guarantee of acceptance for this type of currency, users must fully bear the risks associated with all commercial transactions, according to the banking authority. On the other hand, there is no fund to cover losses in case of devaluation of a virtual coin. Moreover, the consumers face additional risks since no refunds are available in case of digital theft in the platform.
The supervisor also warned for the possibility of the use of virtual money in crime-related activities, like money laundering, according to the European Central Bank and European Bank Authority alerts issued in the last three years.
The official statement is available here
Written for publication @ Technethics
Lisbon, 7th October 2014
141008_Comunicado BdP 141003[1]
João Ferreira Pinto | Lawyer
jfp@joaoferreirapintoadvogados.eu
Senior Partner @ www.joaoferreirapintoadvogados.eu