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All Tokens or Cryptocurrencies Are Securities, Indicates New Zealand's Financial Regulator

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New Zealand's financial regulator has published its official commentary on initial coin offerings and cryptocurrencies.

New Zealand's Thenew zea (FMA) published an explanation of symbolic events, insisting that "the extent to which an international trade organization is regulated depends on whether a" financial product "is offered to retail investors in New Zealand. Securities, equity securities, managed investment products and derivatives are the four categories of financial products defined by the Financial Market Practices Act 2013. The "specific characteristics and economic substance" of the financial markets 39: ACI determine the type of financial product.

More specifically, the regulator added:

All tokens or cryptocurrencies are securities under the CME Act, even those that are not financial products. A security is an arrangement or facility that has or is believed to have the effect of a person making an investment or managing a financial risk.

The regulator insists that its pioneering innovation objectives will provide exceptions to IFAs and encourage start-up companies to apply to the industry. Authority in its first phase of development.

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"We may also, where appropriate, grant exemptions to ensure that the requirements of the FMC law are appropriate for the use of ICOs. This may include the modification of the PDS [product disclosure statement] or the requirements of the governance, "said the FMA.

In addition, the authority asserted that country offices are not classified as "crowdfunding" according to the definition of the term in New Zealand because crowdfunding platforms are specifically authorized by the authority .

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Regulation of the Cryptocurrency Industry

New Zealand tokens or cryptocurrency service providers and companies such as stock exchanges, portfolios and individual brokers are required to comply with certain legal requirements imposed by the Autorité des marchés financiers .

  • Be a member of a dispute resolution system if financial services are provided to retail customers
  • be registered in the Register of Financial Service Providers ( FSPR ) for each category of financial service provided. Token or cryptocurrency issuers may "operate a transfer of value service" or "issue and manage payment methods".
  • must comply with the fair dealing provisions of the Financial Markets Conduct Act
  • comply with anti-money laundering obligations

The regulator urged investors to understand the risks associated with investments in cryptocurrencies, particularly in terms of volatility and security.

The AMF wrote:

Consumers should be aware that cryptocurrencies are volatile, that their value may change quickly and that they are not widely accepted in the same manner as legal offers. The currency held in the digital wallets may be stolen, just like a real wallet.

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