Cryptocurrency: the importance of assessing the risks

Cryptocurrency has its admirers and its detractors. But there is no denying that it looks to be here to stay.

It is important, therefore, that those in business know how it works, the benefits it can bring – and the pitfalls.

There is little doubt that it offers new and exciting business opportunities. The Financial Conduct Authority’s (FCA) definition of cryptocurrency as a publicly available electronic medium of exchange that features a distributed ledger and a decentralised system for exchanging value, may sound like a bit of a mouthful but it is an accurate description. Cryptocurrencies can be accessed via the internet and used for cross-border payments and to fund transfers, all of which can make them useful in business. And being a relatively new concept, cryptocurrency offers investment opportunities.

But while these positives can be welcomed by the business world, it would be foolish – and possibly costly – to ignore the negatives.

There are…