To protect the health and safety of the public and our employees, the Department of Banking has limited the number of employees at our office at 260 Constitution Plaza in Hartford. When contacting the Department, please use electronic communication whenever possible. Consumers are encouraged to use our online form for complaints. If you are unsure where to send an inquiry, you may send it to Department.Banking@ct.gov and it will be routed appropriately. Thank you for your patience during this time.

Cryptocurrency / FinTech

Unmasking Cryptocurrency: Dept of Banking Webinar (mp4)

Common Terms and Definitions

Blockchain

A decentralized digital ledger that reflects all transactions made on that blockchain. Blockchain technology allows users to - among other things - obtain, sell and invest in digital assets, like cryptocurrencies.  A blockchain requires entries to be confirmed and encrypted via an advanced encryption technique called cryptography, which makes the entries very difficult to change or hack. 

Cryptocurrency

A type of digital currency that generally exists only electronically.  Central banks and other governmental authorities do not insure or control cryptocurrencies.  Examples include Bitcoin and Ether.  

Crypto Exchange 

A platform for buying and selling digital currency.  For instance, customers may trade one digital currency for another, or buy digital currency using "fiat currency" (such as the U.S. dollar).

Digital Currency

A form of currency that is available only in digital or electronic form. 

Digital Wallet

Wallets are software programs that allow people to “store” their cryptocurrency, by storing various components of cryptocurrency transactions - such as private keys, public keys, and addresses - that allow the user to gain access to the currency. These wallets come in many forms, including web-based, desktop, mobile, paper, and hardware.

Learn more about the different types of digital wallets.

Fiat Currency

Any currency declared by a government to be legal tender.

Metaverse

Online virtual worlds that stand alone or are interconnected. These virtual worlds provide users with an immersive experience by utilizing virtual or augmented reality technologies. 

Non-fungible Token (NFT)

A digital certificate of ownership that represents a digital or physical asset. An NFT has a unique code that allows it to be identified as something that can be digitally-owned. Think of NFTs as digital ownership of something like art work, sports memorabilia, photos, etc.

Stablecoin

A digital currency that pegs its value to an external reference, typically the U.S. dollar.

Virtual Currency

A digital representation of value used as a medium of exchange, a unit of account, or a store of value, but does not have legal tender status in the United States.  Cryptocurrencies are considered to be virtual currencies.
  

Cryptocurrency Risks

Before you make a payment by cryptocurrency or invest in this virtual currency, make sure you have all the facts.  Understand what makes it different from cash and other payment methods, and learn how to spot scams.

Resources

Cryptocurrency Risks

Crypto Assets (SEC)

Initial Coin Offerings and Cryptocurrencies (FINRA)

Know the Risks Before You Invest in Cryptocurrencies (FTC)

Informed Investor Advisory: Decentralized Finance (DeFi) Defined (NASAA)

Be Cautious of the Crypto Investment Craze (DOB)