New Zealand FMA warns against Bitcoin broker USI-Tech, thus cautioning investors not to deal with this entity. The regulator states that "the operations of the entity to bear the hallmarks of a scam."
17 August, AtoZ Markets – The financial regulator of the New Zealand, the Financial Markets Authority (FMA) has issued a warning on its website for the investors’ community. The regulator has cautioned investors against dealing with a Bitcoin brokerage that calls itself USI-Tech.
New Zealand FMA Warns Against Bitcoin Broker USI-Tech
According to the official regulatory note from the Financial Markets Authority in New Zealand, USI- Tech is operating online via https://usitech-int.com/. A visit to the website reveals that the broker is intending to provide investment services to smaller investors to trade in Forex and Bitcoin markets. The company is claiming to offer automated trading software services while attracting traders with “viral results’ promises of profits of up to 150%.
However, according to the New Zealand watchdog, the company is operating in the country illegally. The regulator notes the following:
“USI-Tech is not registered on the Financial Service Providers Register to provide financial services in New Zealand.”
The regulator further added that it considers the operations of the entity to bear the hallmarks of a scam. Therefore, the New Zealand FMA does not recommend investors to deal with USI-Tech.
In fact, this is not the first time this company has made it to a regulatory warning list. The FMA notes that USI-Tech has already been red flagged by other regulators, such as British Columbia Securities Commission, CNMV, and Financial and Consumer Services Commission.
FMA Forex Warnings
At the beginning of this month, the FMA has issued another two warnings on its website. The announcements are related to two Forex brokers, namely FSMSmart and Baihua Global.
The warning concerning FSMSmart notes that the brokerage claims to be a regulated financial service provider in New Zealand. However, the regulator states that the firm is not registered in the country. In addition, the FMA warns that the company is making unsolicited calls to residents, thus offering their services to individuals.
The second warning features the brokerage going under the name Baihua Global. The regulator notes that the broker is misleadingly using the registration details of Booster Funds Management Limited (FSP555786). The latter is a registered fund manager in New Zealand. Yet, the regulator has cautioned that this entity has no connection with Baihua Global.
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