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LendEDU: the number of cryptocurrency financial protection complaints is growing fast

30 August 2017 21:00, UTC

Bitcoin has always been praised as a decentralized currency without banks interfering in buying, selling and other financial activities. Sometimes, however, banks can prove useful when it comes to protecting your assets and returning funds in case of emergent scenarios. Today Bitcoin and other cryptocurrencies, as well as services based around them, don’t regularly have a good consumer protection program.

That’s why the U.S. Consumer Financial Protection Bureau (CFPB) will see much more complaints about Bitcoin this year, tells the survey undertaken by LendEDU, the online loan refinancing platform. The number is going to grow from 7 complaints last year to a projected 425 this year.

The report says that although the number of complaints will be growing as the time goes, the overall proportion of cryptocurrency complaints will not be as high as regular complaints about fiat money and assets. LendEDU researched 145,948 complaints against 2,731 organizations and found out that they are about very different issues, from transactions to debts and account services.

Coinbase, the prosperous American service dedicated to cryptocurrency wallets, was mentioned in the CFPB complaints 6 times in 2016 and 288 – this year, and this might not even be the final number. The problem of cryptocurrency consumer protection is growing in importance, one might conclude. The community, it appears, will soon see new services with increased consumer protection, as sooner or later, the market always reacts to demands.