Title: What are the Legal Risks to Cryptocurrency Investors?
Headings: What are the Legal Risks to Cryptocurrency Investors?
What are the Legal Risks to Cryptocurrency Investors?
Cryptocurrencies as Property
Decentralized Status
Business Registrations and Licensing
Fraud and Money Laundering

Content: At the federal level, for example, financial institutions must maintain certain activities related to protections against money laundering and fraud, transmission of funds, and more. Considerations like these also apply to businesses dealing with digital currencies. Fraud and Money Laundering
There is a widespread belief that cryptocurrencies provide criminal organizations with a new means of committing fraud, money laundering, and a host of other financial crimes. This may not directly impact most cryptocurrency investors who do not intend to use this new technology to commit such crimes. However, investors who find themselves in the unfortunate position of being a victim of financial crime do not likely have the same legal options as traditional victims of fraud. This issue also relates to the decentralized status of digital currencies. When a cryptocurrency exchange is hacked and customers' holdings are stolen, for instance, there is frequently no standard practice for recovering the missing funds. Digital currency investors thus take on a certain amount of risk by purchasing and holding cryptocurrency assets. It is for this reason that developers and startups related to digital currency have focused such a great deal of attention on creating secure means of holding digital coins and tokens. Still, while new types of wallets are being released all the time, and while cryptocurrency exchanges are always improving their security measures, investors have so far not been able to fully eliminate the legal risks associated with owning cryptocurrencies, and it's likely that they never will.