Minnesota commerce commissioner warns consumers about bitcoin

Regulation | December 14, 2015 By:

Minnesota Commerce Commissioner Mike Rothman warned that Bitcoin is unregulated, and investors can be harmed without bank backing.

Rothman acknowledged that legitimate businesses are using bitcoin and developing legitimate uses for it to buy and sell goods.

“It’s in its infancy in a way — the industry is developing and it’s got to prove itself. Some very legitimate companies are taking a look at it and developing it for legitimate purposes to buy and sell goods,” said Rothman.

The Commissioner, however, warns of “a dark side” because it remains “off the radar screen.”

“I just know that we’re not an island in the world and I’m assuming there are Minnesotans who are savvy working in the Internet area and are potentially part of these transactions. If a consumer or investor is harmed, savings or other investments are backed by the FDIC of the good faith and credit of banks. Here, you’re dealing with a completely private marketplace,” said Rothman.