A quote that is often associated with the Kennedy brothers is “Some men see thin “The Securities Division urges investors to do their homewor “The Securities Division urges investors to do their homework when dealing with self-directed IRA companies aimed at cryptocurrencies,” it said. “Investors may not only incur a tax penalty when rolling over an existing IRA to an unqualified account, the company may then charge an unreasonable fee.
Don’t get caught off-guard!” The division is aware of at least one self-directed cryptocurrency IRA company that charges a commission of 20 percent in addition to a large annual fee. Concerns individuals should consider, the division said, before investing in cryptocurrency or related offerings include: -Cryptocurrency is subject to minimal regulatory oversight, susceptible to cybersecurity breaches or hacks, and there may be no recourse should the cryptocurrency disappear.
-Cryptocurrency accounts are not insured by the Federal Deposit Insurance Corporation. -The high volatility of cryptocurrency investments make them unsuitable for most investors, especially those investing for long-term goals or retirement.
-Investors will have to rely upon the strength of their own computer security systems, as well as security systems provided by third parties, to protect purchased cryptocurrencies from theft. -Many ICOs are based entirely overseas, so if something goes wrong, there may be no recourse for investors or authorities to recover money lost in a fraudulent scheme.
In May the division announced an investigation it had conducted into an online ICO marketed under the “Bionic” brand name had determined the offering was not properly registered as a security in Indiana and contained misleading information. Indiana Securities Commissioner Alex Glass stopped the offering in Indiana through an enforcement action, issuing a cease and desist order for that purpose. Read more from kpcnews.com…
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