Countries around the world are beginning to regulate cryptocurrencies, or are seriously considering doing so. Nevertheless, the regulatory status of crypto is currently far behind the ability of unscrupulous merchants to cause serious financial harm to consumers.

A cryptocurrency exchange allows users to transfer regular national (fiat) currency for crypto, or vice versa. The crypto currency goes into or out of the user’s personal digital crypto wallet.

1. The most common signs of a cryptocurrency scam are:
   1. Receipt of a blackmail email threatening you if you do not send bitcoin to a random address.
   2. Advertising claims that you can earn monthly income by trading cryptocurrency. 
   3. Cold calling you or using high pressure tactics to get you to convert funds to cryptocurrency. 
   4. Not allowing you to withdraw a valid balance.
   5. If the broker or merchant becomes difficult to contact after you send them money in bitcoin or another cryptocurrency.
   6. Promises of low risk and unreasonably high profits.

Funds held in exchanges like Coinbase may be insured if there is a physical security, cyber security or employee breach, but funds you hold in your wallet are not usually insured. With the correct software and tools, it may be possible to locate where your cryptocurrency went, so do not give up. 

1. Yes, the credit card networks allow under one of the following circumstances: 
   1. An unauthorized transaction, such as a stolen card or hacked card data.
   2. When the cardholder did not receive the purchased goods or services, or they were not provided as promised..

In principle, either of the above could apply to a crypto purchase, but you would need to prove that to the bank. This process is more complicated than it should be.