The Ministries of Finance and Commerce and the Central Bank yesterday issued a warning for the public to highlight the possible risks they face when buying, holding or trading virtual currencies such as bitcoin.
They said, a virtual currency is a form of unregulated digital money that is not issued or guaranteed by a central bank that can act as means of payment. It can only be used as a medium to exchange products on a limited network of dealers.
The decentralised, peer-to-peer virtual currencies such as bitcoin, are produced by numerical algorithms, however, their production is done anonymously and therefore cannot be regulated by any authority.
The ministries said that the dangers involved with the ownership or use of virtual currencies include losing your money on the exchange platform.