The financial regulators of Alaska and Idaho have issued warnings on cryptocurrencies and related investments.

The announcement follows similar warning issued by the North American Securities Administrators Association (NASAA) last week.

In an official release dated January 04, the Division of Banking and Securities, a division of the Department of Commerce, Community, and Economic Development of the State of Alaska, cautioned investors against cryptocurrency-related investments and listed the common concerns and pointers to identify fraud.

“The recent wild price fluctuations and speculation in cryptocurrency-related investments can easily tempt unsuspecting investors to rush into an investment they may not fully understand,” said Kevin Anselm, director of the Division of Banking and Securities. “Cryptocurrencies and investments tied to them are high-risk products with an unproven track record and high price volatility. Combined with a high risk of fraud, investing in cryptocurrencies is not for the faint of heart.”

The Idaho Finance Department also issued a warning last week. According to the text (similar to that issued by the Division of Banking and Securities, Alaska), the regulator highlighted the common concerns such as minimal regulatory oversight and high volatility, and common red flags for identifying frauds such as guaranteed high investment returns, unsolicited offers, unlicensed sellers, and pressure to buy immediately, among others.

“Investors should go beyond the headlines and hype to understand the risks associated with investments in cryptocurrencies, as well as cryptocurrency futures contracts and other financial products where these virtual currencies are linked in some way to the underlying investment,” said Gavin Gee, director of the Department of Finance.