New Zealand Regulator Joins Chorus of Caution
The financial regulator in New Zealand joined a growing list of Asia-Pacific voices warning on the dangers of cryptocurrencies and ICO's.
The Financial Markets Authority (FMA) published a detailed commentary on initial coin offers (ICOs) and cryptocurrency services alongside online resources for investors on its website.
Falling in behind the majority of its Asia-Pacific peers the FMA says in its advisory that consumers 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.
A Chorus of Caution
Last month New Zealand's near neighbour Australia through its own financial regulator, The Australian Securities and Investments Commission (ASIC), issued an asset bubble warning in respect to ICOs.
The Auckland based regulator joins a growing list of Asia-Pacific voices warning of the dangers of ICO's. China, Hong Kong, Singapore and Malaysia have all recently gone on record to make investors aware of the risks. Japan's Financial Services Authority (FSA) is also stepping up monitoring the offerings.
Not if but When
Philipp Pieper partner and co-founder of Swarm Fund recently penned an essay for finews.asia on cryptocurrencies and the floods of ICOs hitting the streets. Pieper believes that one thing should be certain to everyone; regulation is not a matter of if’, but when.
And that regulation will have a cascading effect, one that will help investors discern, quite easily now, compelling new investment potential. Because it will be the legitimate companies, who have a solid business plan and nothing to hide, who will welcome this development with open arms.
