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New Zealand’s Financial Watchdog Warns on Crypto Investment Risks

  • Posted On - 2021-01-18 05:38:19

New Zealand’s Financial watchdog has plumbed a warning whistle to cryptocurrency investors when bitcoin’s latest worth drops.

According to a report on a weekday by the NZ Herald, the Financial Markets Authority (FMA) aforementioned New Zealanders who were considering buying cryptocurrencies required to bear in mind that it is “high risk and high volatile” assets.

“Cryptocurrencies aren't regulated in New Zealand and are usually exploited by spammers and hackers,” an associate of  FMA spokesperson told the Herald.

The warning comes each day when the regulator’s U.K. counterpart, the Financial Conduct Authority (FCA), additionally raised similar considerations. The FCA aforementioned individuals ought to be ready to lose “all their money” if they prefer to invest in crypto products promising high yields.

“The FMA shares the FCA’s considerations that some crypto exchanges are promising high returns and customers ought to be ready to lose all of their cash,” aforementioned the interpreter.

Overseas cryptocurrency exchanges are “unregulated” and operate exclusively on-line, creating it more durable to trace the operators, the watchdog cautioned. Users ought to check if the associate exchange holds New Zealand dollars in a very trustee account, they said.

Beginning Dec. 1, the value of bitcoin (BTC, +1.33%) rose 124% from around $18,770 to record highs close to $42,000 on friday. The world’s largest cryptocurrency by market capitalisation has dropped 18% since Sunday and is presently in dynamic hands for around $35,150.

Source: https://www.coindesk.com/new-zealand-financial-authority-bitcoin-warning