Bitcoin investors call for protection after collapse of two major Bitcoin platforms

Bitcoin investors call for protection after collapse of two major Bitcoin platfo

With two of the leading Bitcoin platforms handling the Bitcoin cryptocurrency having collapsed in less than one week, Bitcoin investors and entrepreneurs are calling for protection by the way of regulating the digital currency.

The Bitcoin investors' call for protection comes in the wake of the recent collapse of two major Bitcoin platforms --- Tokyo-based Mt Gox, and Canadian Bitcoin bank Flexcoin. The Flexicon collapse on Sunday followed the Friday collapse of Mt Gox.

Mt Gox - one of the world's leading Bitcoin exchanges, run by Mark Karpeles - has filed for bankruptcy protection. The company has disclosed that it has lost approximately 850,000 Bitcoins, worth nearly £330 million, because of a digital hack.

Flexcoin, meanwhile, has revealed that certain flaws in its software enabled the hackers to pull off a digital heist on Sunday. The company said that the hackers managed to filch all 896 coins stored on the site.

Noting that the collapse of Mt Gox aand Flexcoin highlights the need for regulation of Bitcoin operators, Tom Robinson - director of the UK Digital Currency Association - said: "Regulation is needed, both to protect consumers but also to bring legitimacy to digital currencies."

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