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New Zealand\u2019s financial regulator issued a warning alert to local cryptocurrency investors and traders amid the recent bitcoin\u2019s price action. The Financial Markets Authority (FMA) asks people to remain cautious because cryptos are \u201chigh risk and highly volatile assets.\u201d<\/strong><\/p>\n According to an official statement published in the NZ Herald<\/a>, New Zealand\u2019s financial watchdog is concerned about the latest \u201crollercoaster move\u201d seen in the bitcoin (BTC<\/a>) price. \u201cCryptocurrencies are not regulated in New Zealand and are often exploited by scammers and hackers,\u201d said an FMA spokesman.<\/p>\n But the regulator\u2019s warning is not the only one seen over the last few days. In fact, the FMA quoted<\/a> its U.K. counterpart, the Financial Conduct Authority (FCA), as saying:<\/p>\n The FMA shares the FCA\u2019s concerns that some crypto exchanges are promising high returns and customers should be prepared to lose all of their money.<\/p>\n<\/blockquote>\n The advisory includes a warning on unregulated overseas crypto exchanges. Per the FMA spokesman, exchanges with no connection to New Zealand make it \u201chard to find out who is offering, exchanging, buying or selling\u201d cryptos.<\/p>\n <\/ins> <\/ins> <\/p>\n The watchdog issued a reminder when dealing with a crypto exchange, stating:<\/p>\n You should also check if the exchange holds your New Zealand dollars in a trust account.<\/p>\n<\/blockquote>\n The FMA said that locals need to make sure if the exchange is registered in the Financial Service Providers Register (FSPR). That\u2019s a requirement to access a \u201cdispute resolution scheme,\u201d it added.<\/p>\n NZ Herald\u2019s article also references Cryptopia\u2019s heist \u2014 a Christchurch-based crypto exchange that suffered a major hack in January 2019. That year, the Cryptopia team estimated<\/a> they lost almost 9.5% of their total holdings, and the article noted that \u201ccrypto deposits are not guaranteed.\u201d<\/p>\nFMA Warns About Unregulated Overseas Crypto Exchanges<\/h2>\n
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The Cryptopia\u2019s Saga<\/h2>\n
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