Are stricter rues on the horizon for virtual currencies and the businesses that trade in them?

The Consumer Financial Protection Bureau today issued a new consumer advisory, "Virtual currencies and what you should know about them," warning consumers about the potential risks involved with the use of virtual currencies such as Bitcoin, Dogecoin and others.

The bureau cautioned consumers, "before you get involved, it’s important to know what can go wrong," and cited:

Hackers. Virtual currencies are targets for highly sophisticated hackers, who have been able to breach advanced security systems.
Fewer protections. If you trust someone else to hold your virtual currencies and something goes wrong, that company may not offer you the kind of help you expect from a bank or debit or credit card provider.
Cost. Virtual currencies can cost consumers much more to use than credit cards or even regular cash.
Scams. Fraudsters are taking advantage of the hype surrounding virtual currencies to cheat people with fake opportunities.

The bureau also invited consumers to submit complaints, with documentation, about issues they've encountered using alternative payment instruments.

The CFPB has already demonstrated its inclination toward issuing new rules in response consumer complaints about money transfer, mortgage lending, and credit card add-on products, among others.

As explained in the CFPB advisory:

Complaint data helps us understand what business practices may pose risks to consumers. We’ll use the information to enforce federal consumer financial laws and, if appropriate, take policy steps.

Read or download the six-page consumer advisory.