Based on a Tuesday report by the New Zealand Herald, the Financial Markets Authority (FMA) announced that New Zealanders who were thinking about buying cryptocurrencies should be wary of the “high risk and highly volatile” assets.
“Cryptocurrencies are not regulated in New Zealand and are often exploited by scammers and hackers,” an FMA agent told the Herald.
The caution follows the observer’s United Kingdom counterpart, the Financial Conduct Authority (FCA) raising similar worries. The FCA announced that people are set to lose “all their money” if they opt to invest in crypto commodities reassuring high rewards.
“The FMA shares the FCA’s concerns that some crypto exchanges are promising high returns and customers should be prepared to lose all their money,” said the spokesperson.
Foreign cryptocurrency trades are “unregulated” and function only, making it difficult to monitor the operators, the observer warned. Users ought to examine if a trade possesses New Zealand dollars in a trustee account, they pronounced.
From 1st December, the valuation of bitcoin (BTC, -1.58%) fluctuated 124% from around $18,770 to peak prices around $42,000 on Friday. The world’s biggest cryptocurrency by market capitalization has fallen by 18% since Monday and is presently valued at around $35,150.