The financial market authority is issuing a very strong word about the warning of Kiwis regarding the cryptocurrency. The watchdog commented to Herald following the recent move of bitcoin. The value of the digital currency is falling the third post the doubling from the past month. The same kind of advisory is also formed by the opposite number in the Financial Conduct Authority of the U.K.
“New Zealanders considering purchasing cryptocurrencies, such as Bitcoin, should be aware that these are high risk and highly volatile assets,” as the FMA spokesman said. The cryptocurrencies are not regulated in New Zealand and are being exploited, as the scammers and hackers target them.
The FMA also shared FCA’s concern, as they said that the crypto exchange is promising with higher returns and customers must be prepared to lose all their money.
“Many overseas cryptocurrency exchanges are unregulated and operate exclusively online – with no connection to New Zealand.
This makes it tough to find out who is offering, exchanging, buying, or selling the cryptocurrencies.”
In case you are planning to buy cryptocurrency, you must ensure that the exchange is registered on the Financial Service Provider Register, which is going to give you the access to a resolution scheme that is actually disputed, according to the FMA spokesman.
As per him, you should also check for the large holding validity of the currencies with the New Zealand dollar in a trust account. Well, there is a lot of narrative about bitcoin as it’s focusing on the cryptocurrency roller coaster and people who are purchasing the digital currency needs to stay aware of the issues.
The $30m Cryptopia heist is involving the Christchurch-based cryptocurrency exchange, which is getting operated in the global platform. He has also highlighted the crypto deposit, which is not coming with any guarantee. Also, the Government is going to step up the law or political pressure that might cause a huge loss.