FMA Cracks Down on These Two Companies amid Fraud Concerns in New Zealand

TheFinancial Markets Authority (FMA) of New Zealand has been actively combatingfraudulent activity and scams in the country's financial markets. In a seriesof recent actions, the regulator has taken steps to protect consumers andmaintain market integrity by cancelling one crowdfunding services license andissuing a warning against a cryptocurrency company.

FMA Cracks Down onFraudulent Activity and Scams

Accordingto the update on Wednesday, the FMA cancelled the crowdfunding services license ofEquitise Pty Ltd, an equity crowdfunding service provider licensed since 2014.The cancellation followed Equitise's significant breach of certain marketservices licensee obligations and its failure to meet statutory requirements.

The companyfailed to provide its financial reporting and agreed upon procedures reporting,and was deregistered from the Financial Service Providers Register (FSPR) forfailing to file its annual confirmation within the required timeframe.

"Cancellinga provider's licence is one of the strongest regulatory actions we can take andis not a decision the FMA takes lightly, Peter Taylor, the FMA Director ofSpecialist Supervision and Response, stated, emphasizing the severity ofthe action. Financial service providers must make sure they are able to meetthe legislative requirements and act lawfully. The rules are there to protectconsumers and to ensure market integrity."

In anotherwarning, the FMA cautioned investors about AxonExchange, a suspectedcryptocurrency exchange scam. The platform claims to be based in New Zealandbut is not an incorporated company in the country and is not authorized orregistered on the FSPR to provide financial services.

The FMA isconcerned that AxonExchange is operating a scam, prompted by an investor's complaint of difficulty withdrawing funds from the platform.

Rising Number of Impostorsin New Zealand

Theregulatory authority in New Zealand has raised concerns about an increase inimpostor-related scams, particularly highlighting the rise in fake productdisclosure statement frauds. In 2023, there were 82 warnings issued regardingsuspected investment scams and impostor websites, as well as 22 warningsconcerning unregistered businesses. This marks a significant uptick in effortsto alert the public about these deceptive practices.

Additionally,the FMA has reported an emerging trend where scammers impersonate anotherregulatory body, specifically the UKs Financial Conduct Authority. Thesescammers send emails to New Zealand residents claiming they can assist inrecovering funds lost in previous scams.

Accordingto a report published by the FMA at the end of last year, while the totalnumber of crime warnings decreased to 89 in 2023 from 111 the previous year,there was a noteworthy increase in the number of impostors and imposterwebsites. The report noted 29 such cases in 2023, a significant rise fromprevious years when similar cases were isolated and not statistically relevant.

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Crypto ‘regulatory approach isn’t needed now’ — New Zealand central bank

Reserve Bank of New Zealand however said that crypto and stablecoins should be more closely monitored.

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New Zealand’s Central Bank Does Not Want Crypto Regulations

The Reserve Bank of New Zealand issued a statement today (Friday) to notify its intention to increase the monitoring of stablecoins and crypto assets. However, the central bank does not believe in bringing regulatory oversight to the industry.

No Need for Crypto Regulations

The regulatory clarification came following public input around the issues and risks of private money on the financial system and monetary sovereignty.

“We agree with the balance of submitters that a regulatory approach isn’t needed right now, but increased vigilance is,” Ian Woolford, Director of Money and Cash at the Reserve Bank of New Zealand, said in a statement released today (Friday).

Prior to deciding on its stance, the central bank considered the input of 50 stakeholder submissions on crypto and decentralized finance. The stakeholders are the crypto advocacy group, BlockchainNZ, blockchain company Ripple, and banks like Westpac and the Bank of New Zealand.

New forms of money such as crypto and stablecoins create opportunities and risks for New Zealanders and the financial system. Have your say now on these and how we should respond: https://t.co/RE9j0ryjVk#rbnz pic.twitter.com/yvcR2tjd9y

“The submissions reinforce our view that there are significant risks and opportunities from stablecoins and other private money innovations, but also significant uncertainties about how the sector will develop and where the optimal balance will lie. We agree that caution is needed, which also reinforces the need for enhanced data and monitoring to build understanding,” Woolford added.

Jurisdictional Confusion?

He further highlighted that the Reserve Bank of New Zealand has no jurisdiction to regulate “cryptoassets and other innovations.”

“However, issues such as consumer and investor protection or potential commercial or regulatory barriers to entry do matter for the collective vision we have for a reliable and efficient money and payment system that better meets the evolving needs of New Zealanders,” Woolford added.

Meanwhile, New Zealand’s Financial Markets Authority (FMA) raised multiple alarms against retail investments in ‘volatile and risky’ Bitcoin. The crypto industry is also unregulated in the country.

The New Zealand central bank’s stance against bringing crypto regulations occurred when other global regulators were in line to control the booming industry. European Union has already passed the Markets in Crypto Assets (MiCA) law, while jurisdictions like Hong Kong also brought progressive crypto regulations.

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Swyftxs Acquisition of Easy Crypto in New Zealand Boosted by Trumps Influence

Swyftx Acquires New Zealand Cryptocurrency Exchange Amid Trump Influence Australian cryptocurrency exchange Swyftx has recently acquired a New Zealand crypto exchange, bolstering its presence in the region. This move comes amidst speculation that the crypto market is experiencing a “Trump Tailwind,” suggesting a potential boost in the sector due to the former US president’s policies [...]

The post Swyftxs Acquisition of Easy Crypto in New Zealand Boosted by Trump’s Influence appeared first on Crypto Breaking News.

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Aussie ‘Big 4’ bank mints stablecoin for carbon trading and remittances

This marks the second “Big Four” bank in Australia to launch an Australian-dollar pegged stablecoin in a bid to boost the digital economy.

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FMA Warns against Crypto Fraudsters and Impersonators

<p> The Financial Markets Authority (<a href="https://www.financemagnates.com/tag/fma/" target="_blank" rel="follow">FMA</a>), New Zealand's regulatory market watchdog, issued two crypto scam warnings on Monday, alerting against a potential charge of non-existent fees and unregulated activity.</p><p class="MsoNormal">According to separate press releases published on 12 December 2022, Krypto Security and Bay Exchange are contacting New Zealand citizens to offer access to cryptocurrency services. However, none of these companies are regulated by the FMA.</p><p class="MsoNormal">Bay Exchange claims it is a London-based <a href="https://www.financemagnates.com/terms/c/cryptocurrency-exchange/" target="_blank" id="601e2e5f-0c28-4253-9ad4-5e6b251ba2fa_1" class="terms__main-term">cryptocurrency exchange</a> offering 'AI Software' for automatic decision-making and trade execution. However, New Zealand's residents cannot access their accounts after making their initial deposits. </p><p class="MsoNormal">"We are concerned that Bay Exchange is providing financial services to residents without complying with the New Zealand financial markets legislation. Bay Exchange is not registered on the Financial Service Providers Register to provide their services in New Zealand," the FMA stated.</p><p class="MsoNormal">Bay Exchange provides its services through the bayexchange.com website. New Zealand's regulator recommends exercising extreme caution.</p><p class="MsoNormal">Krypto Security is the second company added to the FMA's scam alert list on Monday. Its representatives contact New Zealand's residents claiming the entity may help recover stolen cryptos. However, before starting the recovery process, Krypto Security requires a payment of a sizable commission. </p><p class="MsoNormal">"Various large fees have been charged in the recovery process, including a payment for a 'barcode' to meet the New Zealand Anti-Money Laundering legislative requirements. We note that there is no such requirement in New Zealand," the FMA commented in a separate statement.</p><p class="MsoNormal">Scammers have been contacting victims by phone and email, trying to impersonate the FMA's officials using the @gmail.com domain addresses. The FMA reminds the agency uses only the official .govt.nz domain, like other government agencies in <a href="https://www.financemagnates.com/tag/new-zealand/" target="_blank" rel="follow">New Zealand</a>. Moreover, the regulator never contacts consumers to pay commissions or additional fees.</p><p>Watch Out for Imposters</p><p class="MsoNormal">Crypto Security activity is not the first time scammers have impersonated the New Zealand FMA to deceive consumers and investors. In October, the regulatory market watchdog <a href="https://www.financemagnates.com/forex/fma-warns-against-fraudster-impersonating-the-regulator/" target="_blank" rel="follow">issued a warning</a> against an individual claiming to work for the regulator. The fraudster was cold-calling members of the public to obtain personal information.</p><p class="MsoNormal">"If you get an unsolicited call, we recommend you hang up and contact us directly via the contact information provided on our website," the FMA advised. </p><p class="MsoNormal">Furthermore, the institution has warned against entities impersonating licensed trading companies on several occasions. Previous alerts were related to <a href="https://www.financemagnates.com/terms/c/clone/" target="_blank" id="c02bac54-0735-474c-8969-06d3fdb49589_1" class="terms__secondary-term">clone</a> websites, including nzglobaltrading.com, horizoncapital.ltd and goldenchaseltd.com.</p> This article was written by Damian Chmiel at www.financemagnates.com.

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Binance Intensifies Growth With New Offices In New Zealand And Other Countries To Stamp Its Authority As The King of Exchanges

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Binance New Zealand Now Operational

Binance New Zealand is now live after securing a financial service provider registration in the country.

The post Binance New Zealand Now Operational appeared first on BitPinas.

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Binance Scores Another Regulatory Approval in New Zealand

Binance is not relenting in its efforts to offer its services globally, as the company has received its latest approval in New Zealand.

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Binance Launches in New Zealand amidst Global Expansion

<p>Binance, the world’s largest cryptocurrency exchange by market capitalization, has launched a subsidiary in Oceania country New Zealand.</p><p>The exchange on Thursday announced that it has successfully registered as a Financial Service Provider with the New Zealand Ministry of Business, Innovation and Employment.</p><p>“New Zealand is an exciting market with a strong history of fintech innovation and our team of Binancians in New Zealand are working hard to bring the freedom of crypto to Kiwis,” Changpeng Zhao, Binance’s CEO, said.</p><p>The development comes over a week after Binance <a href="https://www.financemagnates.com/cryptocurrency/news/binance-gains-mvp-license-from-dubais-virtual-asset-regulator/">secured</a> a Minimal Viable Product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA) following a <a href="https://www.financemagnates.com/cryptocurrency/news/binance-strengthens-middle-east-presence-with-new-dubai-license/">provisional license</a> issued in March.</p><p>Presence in Oceania</p><p>According to Binance, Oceania accounts for 1 million of the <a href="https://www.binance.com/en/news/flash/7185856">current over 320 million crypto users</a> around the world. However, New Zealand is not Binance’s first stop in Oceania. </p><p>Binance already operates Binance Australia where it has <a href="https://www.binance.com/en-AU/blog/all/binance-australia-becomes-the-worlds-first-esg-reporting-digital-currency-exchange-421499824684903123">an active base</a> of over 700,000 users and recently <a href="https://www.financemagnates.com/cryptocurrency/news/binance-starts-offering-crypto-cfds-to-wholesale-australian-traders/">launched</a> cryptocurrency contract for difference (CFDs) for wholesale traders.</p><p>Binance is yet to share more details on its plan for New Zealand. However, the exchange has recorded milestones stamping its presence across the world, from Africa to Europe to the Middle East.</p><p>The exchange recently disclosed that it was <a href="https://www.financemagnates.com/cryptocurrency/a-virtual-free-zone-in-africa-is-being-discussed-with-binance/">in talks with</a> the Nigeria Export Processing Zones Authority to support the creation of Africa’s first virtual free trade zone in Nigeria.</p><p>In July, Binance <a href="https://www.financemagnates.com/cryptocurrency/news/binance-obtains-vasp-registration-in-spain/">secured</a> the Virtual Asset Services Provider (VASP) registration from the Bank of Spain one month after <a href="https://www.financemagnates.com/cryptocurrency/regulation/binance-gets-green-light-from-french-regulators/">getting the green light</a> from French regulators.</p><p>The exchange is also after getting licensed in <a href="https://www.financemagnates.com/cryptocurrency/after-frances-nod-binance-faces-germany-to-deepen-ties-in-europe/">Germany</a> and across all of Europe, Zhao told Bloomberg in an interview.</p><p>Beyond Europe, Binance is <a href="https://www.financemagnates.com/cryptocurrency/binance-is-after-vasp-emi-licenses-in-philippines-ceo-says/">also chasing</a> the VASP and electronic money transmitter licenses in the Philippines.</p><p>The exchange has been on a race for licenses after suffering setbacks from hassles with regulators around the world.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

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Huobi To Restrict Derivatives Trading for New Zealand Users

Huobi has made an official announcement that it will impose restrictions on derivatives products for users in New Zealand. (Read More)

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New Zealand Police investigate allegedly fraudulent crypto platform Quwiex

The Auckland City Financial Crime Unit is investigating Quwiex Limited, a self-proclaimed crypto platform, after multiple reports from victims that the platform is a scam, according to an RNZ report.

The post New Zealand Police investigate allegedly fraudulent crypto platform Quwiex appeared first on CryptoSlate.

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Introducing BlockchainNZ: an NZ Tech Alliance Member

Reading Time: 4 minutes Introducing BlockchainNZ BlockchainNZ is an NZ Tech Alliance member with a mission to work with local businesses, overseas partners and the New Zealand Government to educate, advocate, and create opportunities concerning blockchain technology and its implications. The organisation was initially established in 2016 as the Blockchain Association of New Zealand as a group working together ... Read more

The post Introducing BlockchainNZ: an NZ Tech Alliance Member appeared first on BitPrime.

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Otago’s Locals Protest Against a Newly Constructed Mining Facility

Otago’s locals are protesting against a contentious data center in Clyde, Central Otago. It is set to open in October, and power firm Contact Energy believes it will be the first of several in New Zealand over the following few years. Lake Parime, a UK-based digital infrastructure firm that provides services for blockchain and cryptocurrency, […]

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Global Cryptocurrency Adoption

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The post Global Cryptocurrency Adoption appeared first on BitPrime.

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Cryptocurrency: Why consider it now and how to get started safely?

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The post Cryptocurrency: Why consider it now and how to get started safely? appeared first on BitPrime.

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Decline In Cash Usage Could Force New Zealand To Launch Digital Currency

Declining cash usage in New Zealand could inspire the country’s financial regulatory authorities to launch a central bank digital currency (CBDC) sooner than expected. Electronic transactions currently account for 90% of liquid money in the country according to an official statement from the Reserve Bank of New Zealand. Additionally, as of 2020, only 9% of […]

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New Zealand Launched Its First Bitcoin-Only Investment Fund

New Zealand sees its firs retail oriented Bitcoin investment fund launched.

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New Zealand Central Bank Seeks Public Consultation on CBDC

The deadline for receiving the feedback is December 6.

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New Zealand Eyeing the Possibility of Rolling Out a CBDC

New Zealand is in the race of setting up a central bank digital currency (CBDC) because it sees it as a stepping stone towards attaining an efficient monetary policy tool. (Read More)

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