<p> The Financial Markets Authority (<a href="https://www.financemagnates.com/tag/fma/" target="_blank" rel="follow">FMA</a>), New Zealand's regulatory market watchdog, issued two crypto scam warnings on Monday, alerting against a potential charge of non-existent fees and unregulated activity.</p><p class="MsoNormal">According to separate press releases published on 12 December 2022, Krypto Security and Bay Exchange are contacting New Zealand citizens to offer access to cryptocurrency services. However, none of these companies are regulated by the FMA.</p><p class="MsoNormal">Bay Exchange claims it is a London-based <a href="https://www.financemagnates.com/terms/c/cryptocurrency-exchange/" target="_blank" id="601e2e5f-0c28-4253-9ad4-5e6b251ba2fa_1" class="terms__main-term">cryptocurrency exchange</a> offering 'AI Software' for automatic decision-making and trade execution. However, New Zealand's residents cannot access their accounts after making their initial deposits. </p><p class="MsoNormal">"We are concerned that Bay Exchange is providing financial services to residents without complying with the New Zealand financial markets legislation. Bay Exchange is not registered on the Financial Service Providers Register to provide their services in New Zealand," the FMA stated.</p><p class="MsoNormal">Bay Exchange provides its services through the bayexchange.com website. New Zealand's regulator recommends exercising extreme caution.</p><p class="MsoNormal">Krypto Security is the second company added to the FMA's scam alert list on Monday. Its representatives contact New Zealand's residents claiming the entity may help recover stolen cryptos. However, before starting the recovery process, Krypto Security requires a payment of a sizable commission. </p><p class="MsoNormal">"Various large fees have been charged in the recovery process, including a payment for a 'barcode' to meet the New Zealand Anti-Money Laundering legislative requirements. We note that there is no such requirement in New Zealand," the FMA commented in a separate statement.</p><p class="MsoNormal">Scammers have been contacting victims by phone and email, trying to impersonate the FMA's officials using the @gmail.com domain addresses. The FMA reminds the agency uses only the official .govt.nz domain, like other government agencies in <a href="https://www.financemagnates.com/tag/new-zealand/" target="_blank" rel="follow">New Zealand</a>. Moreover, the regulator never contacts consumers to pay commissions or additional fees.</p><p>Watch Out for Imposters</p><p class="MsoNormal">Crypto Security activity is not the first time scammers have impersonated the New Zealand FMA to deceive consumers and investors. In October, the regulatory market watchdog <a href="https://www.financemagnates.com/forex/fma-warns-against-fraudster-impersonating-the-regulator/" target="_blank" rel="follow">issued a warning</a> against an individual claiming to work for the regulator. The fraudster was cold-calling members of the public to obtain personal information.</p><p class="MsoNormal">"If you get an unsolicited call, we recommend you hang up and contact us directly via the contact information provided on our website," the FMA advised. </p><p class="MsoNormal">Furthermore, the institution has warned against entities impersonating licensed trading companies on several occasions. Previous alerts were related to <a href="https://www.financemagnates.com/terms/c/clone/" target="_blank" id="c02bac54-0735-474c-8969-06d3fdb49589_1" class="terms__secondary-term">clone</a> websites, including nzglobaltrading.com, horizoncapital.ltd and goldenchaseltd.com.</p>
This article was written by Damian Chmiel at www.financemagnates.com.
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