Meeting regulatory compliance under the telescope:
Tolerance with unregistered financial services is over, and a public campaign to enlighten residents on crypto-associated investment schemes.
October- 26, 2018 | AtoZ Markets
New Zealand’s financial regulatory watchdog, the Financial Markets Authority (FMA) has released its annual report for the year ended June 30, 2018, noting that unlicensed businesses offering bitcoin-related products as well as other financial services will no longer be tolerated, as the media reported on October 25, 2018.
The step comes as per analysts, to “sanitise” the financial ecosystem and purify it from bad sectors.
The financial regulator outlined in its document today the steps to make financial companies more regulatory compliant, as well as educated New Zealand residents on the pros and cons of bitcoin and other cryptocurrency-associated investment products.
The FMA had reportedly joined earlier this year forces with its international counterpart- the Australian Royal Commission, to improve the conduct of financial firms including banks, forex brokers, and others, to make them comply with the existing rules.
Maturity of the market demands commitment to the regulations
In his turn, Rob Everett- the CEO of FMA, has reiterated that as the New Zealand financial sector is regarded as mature enough in the venue, all participants should fully understand what is required of them.
“All market participants should be aware of their licence conditions and obligations. Where we see non-compliance, our response will be appropriate but lack of time or experience is not a valid excuse.”, said Everett.
According to the latter, the FMA had taken course of actions against firms who misused the Financial Service Providers Register, while also “issuing guidance about cryptos for interested investors, to coincide with the sudden spike in interest.”
The financial watchdog sees that blockchain-based businesses encourage innovation, which means interested providers need to approach it for guidance before commencing with their crypto-based businesses.