2018 Currency Trifold

What are Virtual Currencies?
A digital representation of value that
functions as a medium of exchange, a unit
of account, and/or a store of value.

In some cases, you can spend it like money,
but it does not have legal tender status in
the United States.

CFTC
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Washington, DC 20581

Some virtual currencies have an equivalent

866-366-2382 (Consumer Hotline)

value in other currencies, such as U.S.

202-418-5514 (TTY)

dollars or Euros, or can be traded for other

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virtual currencies. These are referred to as
convertible virtual currencies. Bitcoin is an
example of a convertible virtual currency.

When you buy or sell virtual currencies with

This brochure was prepared by the Commodity Futures Trading
Commission’s Office of Customer Education and Outreach. The
brochure is provided for general informational purposes only
and does not provide legal or investment advice to any
individual or entity. Please consult with your own legal adviser
before taking any action based on this information.

dollars for your personal wallet, you are
buying on the cash or spot market. Virtual
currencies can also be purchased through
initial coin offerings or ICOs.

@CFTCgov

@CFTC

Learn more at www.cftc.gov/bitcoin

U.S. COMMODITY FUTURES TRADING COMMISSION

Virtual Currencies are Commodities

Risks Buying Virtual Currencies

Beware of Fraud

Virtual currencies have been determined to be

Purchasing virtual currencies on the cash market
comes with a number of risks, including:

There may be no recourse if your virtual
currency is stolen.

commodities under the Commodity Exchange
Act. While its regulatory oversight authority
over commodity cash markets is limited, the U.S.
Commodity Futures Trading Commission (CFTC)
maintains general anti-fraud and manipulation
enforcement authority over virtual currency cash
markets as a commodity in interstate commerce.

•M
 ost cash markets are not regulated or
supervised by a government agency.
• Trading platforms may lack customer
protections or safeguards against market
manipulation.
• Extreme price volatility or “flash” crashes.
• Platforms selling from their own accounts and
putting customers at a disadvantage.

•V
 irtual currencies are commonly targeted by
hackers and fraudsters.
•D
 o not invest in products you do not
understand.
•  There is no such thing as a guaranteed
investment or trading strategy.
•  S ome ICOs can be used to improperly entice
investors with promises of high returns.
•  I f someone says they are a broker or advisor,
check their registration at SmartCheck.gov.

Suspect Fraud?
If you believe you may have been the victim of
fraud, or to report suspicious activity, contact us at
866.366.2382 or visit SmartCheck.gov/submitatip.

Keep a pulse on virtual currencies.
Find podcasts, weekly reports, and tips for
protecting yourself at www.cftc.gov/bitcoin.