New Zealand’s FMA Warns Against Profit Bitcoin

The platform resembles classic get-rich-quick scams.

The Financial Markets Authority (FMA), New Zealand’s watchdog agency, issued a warning on Monday against Profit Bitcoin.

The regulator raised concerns against the crypto investment platform as it resembles scams.

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The crypto platform is allegedly using the photo of New Zealand’s Prime Minister Jacinda Ardern, along with false claims to promote its schemes.

“We have been made aware that Profit Bitcoin is advertising on Facebook by promoting false news about the government’s initiatives along with an image of New Zealand’s Prime Minister,” the warning stated.

A get-rich-quick scam

Operating from website, the platform offers trading services with digital currencies on its proprietary platform.

On its website, Profit Bitcoin claims that its members “typically profit a minimum of $13,000 daily.”

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“Our members work an average of 20 minutes a day or less. Because the software handles the trading, the amount of “work” required is minimal,” the FAQ section on the website detailed.

It also lures traders in by making claims like its members became millionaires in merely 61 days.

The FMA also warned that the platform is not registered under it as a financial service provider, which is mandatory for any such offerings.

“Profit Bitcoin is not registered as a financial service provider in New Zealand and is therefore not permitted to provide financial services/products to New Zealand residents,” the FMA stated.

New Zealand’s regulator is also very vigilant against financial scams and lapses by established platforms.

Earlier today, Finance Magnates reported on the warning of the regulator against Tiger Brokers (NZ) Limited, a New Zealand Exchange (NZX) accredited broker, for not having the appropriate anti-money laundering protections in place.

Meanwhile, regulators around the world are constantly issuing warnings against crypto extortion scams leveraging peoples’ fear of the coronavirus.

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