Wisconsin DFI Cautions Investors

The Wisconsin Department of Financial Institutions (DFI) has issued an advisory reminding investors to be cautious when considering investing in three products recently making news: marijuana-related investments, binary options and digital currency.
As more jurisdictions clarify their legal definitions on the growth and use of medical and recreational marijuana, an increasing number of companies focused on the marijuana industry are seeking funds from investors.
A binary option contract is based on the investor’s prediction of an underlying security’s value at a predetermined date. There are only two possible outcomes: the investor may receive a fixed amount of money for guessing correctly, or lose the entire investment for guessing incorrectly. Bitcoin and other digital currency remain in the headlines as new exchanges emerge claiming to be licensed and regulated by federal, state, or jurisdictional financial authorities and a growing number of brand-name retailers accepting digital currency as payment for goods and services.
The advisory can be found on the DFI website, www.wdfi.org. The advisory includes information to help investors better understand each of these products, including their risks. DFI can be contacted at (608) 266-2139 or by e-mail at DFISecurities@wisconsin.gov.