New Zealand’s FMA Blacklists Trading Software Provider USI-Tech

The financial watchdog is the fourth international regulator to flag the alleged crypto and forex platform trading provider.

New Zealand’s Financial Markets Authority (FMA) updated its warning list on Thursday to include USI-Tech, an operator of a forex and Bitcoin trading platform. According to the warning, the crypto and forex trading platform provider is offering financial services and products to residents of New Zealand without authorization.

The regulator also warns that the operations of USI-Tech, which is based in Dubai, United Arab Emirates, have the characteristics of a scam. The FMA strongly urges investors not to deal with the company.

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USI-Tech claims on its website to enable “smaller” (retail) investors to trade on the forex and Bitcoin markets and “have real success.” Investors can allegedly trade through its online trading software, and the company advertises that “we’ve consistently delivered outstanding results.” USI-Tech operates through https://usitech-int.com/. It is also active on Twitter, Instagram, and Facebook.

The alleged trading platform provider also tells potential investors that they don’t need any expertise in the markets. Claiming that USI-Tech can help traders get started and earn strong returns on their investments. On its website, it also promotes a compensation structure which resembles a pyramid scheme to get people to recruit family and friends to invest.

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USI-Tech is flagged by yet another regulator

The warning from the FMA is not the first for USI-Tech. It has drawn the attention of three other financial regulators – Canada’s British Columbia Securities Commission (BCSC), Spain’s Comisión Nacional del Mercado de Valores (CNMV) and the Financial and Consumer Services Commission (FCSC) from New Brunswick, Canada.

BCSC was the first regulator to flag USI-Tech for suspicious activity on December 15, 2018. This was followed by a warning from FCSC which blacklisted the company. This is because it was illegally promoting its products in the New Brunswick province.

The FMA is constantly updating its warning list on its website. These warnings contain a number of financial firms that are operating in the country without authorization. Often, these companies have the characteristics of a scam.

Earlier this month, Finance Magnates reported that the watchdog had added two unregulated firms to its warning list Oak Harbour Limited and Caledonia Investment Company Limited. According to the warnings, both firms have the characteristics of a scam.

Across the world, regulators have their work cut out for them trying to monitor the industry and identify potential scams. For residents in New Zealand, the FMA urges investors to check its website before engaging with any financial firm.

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