Wednesday, October 25, 2017 09.47AM / Mondo
is increasingly shaping financial services and regulators globally are
considering their responses. The FMA wants to facilitate responsible
innovation, and ensure that the regulatory regime remains relevant and agile.
This is supported by the Financial Markets Conduct Act 2013, as one of its
purposes is ‘to promote innovation and flexibility in financial markets’.
FMA regularly engages with other regulators and industry bodies locally and
internationally on these issues. The content forms part of the FMA’s broader,
ongoing effort to better understand, and share our views, on the risks and
opportunities associated with technological change and innovation.
online content covers our view on:
Initial Coin Offers
are used by businesses and individuals to raise funds from investors online.
Investors receive digital tokens that have certain rights.
FMA’s view is that the specific characteristics and economic substance of an
ICO determine if it’s a financial product – if it is regulated, and if so how.
FMA strongly encourages any businesses considering making an offer through an
ICO to approach us early during their development phase.
services are businesses and individuals offering services such as
cryptocurrency exchanges, wallets and broking.
FMA’s paper sets out the legal obligations for such providers:
· must be a member of a dispute resolution scheme
· must be on the Financial Services Providers Register
· must comply with fair dealing provisions in the
Financial Markets Conduct Act
Investor resources on cryptocurrencies
must understand the risks involved with cryptocurrencies and associated
services before they invest.
online exchanges are unregulated and operate exclusively online, with no
connection to New Zealand. This means it is hard to find out who is offering,
exchanging, buying or selling. It also makes it unlikely investors will recover
their money if things go wrong.
cryptocurrencies may make investors a target for scammers.
need to be aware that cryptocurrencies are volatile, their value can change
quickly and they aren’t widely accepted in the same way as legal tender. The
currency held in digital wallets is at risk of being stolen, just like a real
the ways to invest
content on FMA’s website before investing in cryptocurrencies.