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Hong Kong central bank warns of bitcoin dangers as MyCoin disappears without trace

10 February 2015  |  8575 views  |  0 Hong kong modern buildings 1

Hong Kong's central bank has warned the public about investing in bitcoin after local media reports that a virtual currency exchange operator may have scarpered with $387 million in client funds.

South China Morning Post reported the closure of Hong Kong-based MyCoin, billing the business as an unregulated ponzi scheme that has left up to 3000 investors facing massive losses.

MyCoin promised investors startling returns on their investments at the same time as the crypto-currency markets were being upended by a downward spiral in bitcoin values.

Responding to the reports, the Hong Kong Monetary Authority has issued a statement, re-iterating its previous guidance over the dangers of investing in virtual currency schemes.

States the HKMA: "We would like to remind members of the public to stay vigilant and guard against unscrupulous practices when participating in any investment plan, regardless of whether the products are bitcoin ... or any type of financial or non-financial assets."

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