The Wisconsin Department of Financial Institutions (DFI) is cautioning investors about risks associated with interest-bearing cryptoasset and cryptocurrency accounts.
DFI reports that a growing number of companies offer so-called “deposit” account products that promise to pay high rates of interest on deposits of cryptocurrencies, such as Bitcoin, Dogecoin, Litecoin and Primecoin. These interest-bearing accounts are generally much riskier than the traditional savings accounts offered by banks and credit unions.
As with all investments, the DFI encourages investors to do their homework and contact the department with questions.