Financial Markets Authority update - Dec 2017

The news is currently full of stories about Bitcoin – selling a story about how to become a millionaire overnight. But we are receiving an increasing number of complaints from investors who’ve lost money using cryptocurrency exchanges.

For example, some investors have told us they are unable to cash out.  Other people have lost amounts from their ewallets or have been locked out of their accounts.

We strongly recommend never invest more than you can afford to lose and only buy cryptocurrencies through exchanges that:

  • are based in New Zealand
  • are a member of a dispute resolution scheme
  • hold your New Zealand dollars in a trust account
  • read our tips to learn more about cryptocurrencies and the risks to consider.

Even if you use a NZ based exchange, you will not be protected against trading losses. Buying and selling crypto currencies is highly speculative and the exchange rates for crypto currencies have historically been very volatile.

Source: Financial Markets Authority