In a concerted effort to protect investors, the FMA has warned against Promarkets and Coinvest. The New Zealand's regulator remains determined in its efforts to diminish unlawful activity.
September 15, 2020 | AtoZ Markets – The Financial Markets Authority (FMA) of New Zealand, the government agency responsible for financial regulation, has issued warnings against two offshore brokerages, Promarkets and Coinvest. The regulator states the companies are not registered, licensed, or regulated in New Zealand and are not registered on the FSPR.
The Financial Markets Authority (FMA) plays a critical role in regulating capital markets and financial services in New Zealand. It is the New Zealand government agency responsible for enforcing securities, financial reporting, and company law as they apply to financial services and securities markets.
Is Promarkets & Coinvest scam? FMA issues warning
Promarkets has been falsely advertising and using New Zealand celebrities to promote Promarkets when this is not the case.
"Individuals from Promarkets have then been contacting New Zealanders claiming they can gain high profits/yields and are endorsed by New Zealand celebrities which has the hallmarks of a scam, FMA said."
Also, according to the regulator's warning, Promarkets could be involved in a scam.
Moreover, Coinvest is a broker that offers cryptocurrency trading. On their website, the broker claims to allow investors to deposit Bitcoin into a pool of other Bitcoins from investors all over the world, from which their company invests in and trades on the crypto market which is similar to the forex market.
"Our main trading pair is BTC:USD, all trading happens at our trading desk with the goal of returning profit for all participating members."
However, in its warning, the FMA recommends exercising caution before dealing with Coinvest, and their website https://coinvest.ltd/. The website displays a fake company certificate of incorporation, as evidence to mislead investors.
However, the watchdog says the website is not associated with New Zealand incorporated company, Coinvest Limited. In fact, the site is not subject to any regulation in New Zealand.
You can share your Promarkets and Coinvest experience with us by commenting on this post.
We always advise traders to avoid dealing with unregulated offshore Forex brokers as most of them are investment scams. There are a number of reliable and Regulated Forex brokers to choose from on our website.
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