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**Consumer Alert** CFO Jimmy Patronis: Knowledge is Power When It Comes to Cryptocurrency

3/5/2019

For Immediate Release: Tuesday, March 5, 2019
Contact: Devin Galetta, 850.413.2842, devin.galetta@myfloridacfo.com  

**Consumer Alert**
CFO Jimmy Patronis: Knowledge is Power When It Comes to Cryptocurrency

TALLAHASSEE, Fla. — In recognition of National Consumer Protection Week (March 3-9, 2019), Florida Chief Financial Officer (CFO) Jimmy Patronis launched his Cryptocurrency Consumer Protections website to help consumers better understand cryptocurrency, help them make informed financial decisions and guard themselves from scams.
 
CFO Jimmy Patronis said, “Yesterday, I launched my Fraud Free Florida initiative to further protect Floridians from fraud and empower our consumers to better defend themselves from scams. Cryptocurrency is a new word for many Floridians and it’s critical that you fully understand how new forms of digital and virtual currency work before you invest. It’s my goal to ensure Florida’s consumers are informed of the risks and benefits of this emerging industry and know how to protect themselves from fraud and scams.”
 
CFO Patronis’ Consumer Protections website provides resources and information for consumers on a variety of financial and insurance topics. Consumer Protection Week focuses on helping consumers understand consumer rights and providing them with the tools they need to make knowledgeable decisions about money.
 
4 Tips for Cryptocurrency Consumers

1. Cryptocurrency is not insured by the government. Unlike the U.S. Dollar, the government does not insure cryptocurrency or cryptocurrency accounts. If a cryptocurrency exchange or wallet company fails, the government will not cover your losses.
2. Cryptocurrency values can fluctuate. The value of cryptocurrency is derived by a common belief among users that it has value and it is based on supply and demand which is highly influenced by word of mouth.
3. Cryptocurrency can be stolen. Hackers have been able to breach advanced security systems to access personal information based on the public cryptocurrency transaction records. Any computer that stores cryptocurrency is a target for hackers.
4. Cryptocurrency transactions can be taxed. The Internal Revenue Service views cryptocurrencies as assets, not currency, and therefore all cryptocurrency gains or losses should be reported when filing taxes.

Visit CFO Patronis’ Cryptocurrency Consumer Protections website for more information. If you feel you have been the victim of ID Theft or fraud, report it immediately by visiting FraudFreeFlorida.com.

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About CFO Jimmy Patronis
Chief Financial Officer and State Fire Marshal Jimmy Patronis is a statewide elected official and a member of Florida’s Cabinet, who oversees the Department of Financial Services. CFO Patronis works each day to fight insurance fraud, support Florida’s firefighters, and ensure the state’s finances are stable to support economic growth in the state. Follow the activities of the Department on Facebook (FLDFS) and Twitter (@FLDFS).