On Wednesday, the nation's financial watchdog included BTCSWE and Grandeur Capital Pro, fictitious entities, in its cautionary list.

BTCSWE, a legitimate cryptocurrency exchange licensed by the FMA, was confirmed by regulators to have been misrepresented in a broader recovery scam. The scammers used forged documents to convince victims of their legitimacy, prompting them to pay a contractual fee over several months to recover lost funds. Victims were also directed to install "anydesk" software for remote access, leading the FMA to advise those who installed it to seek assistance from IT professionals immediately.

Grandeur Capital Pro, a purported forex, stock, and crypto trading platform with a New Zealand address, was also flagged by the FMA. However, the regulator doubts the legitimacy of the provided address and suspects false registration/licensing information on their website.

New Zealand's cryptocurrency market revenue is forecasted to hit $102.2 million by 2024, with an increasing number of Kiwis expected to embrace cryptocurrencies. Consequently, the Reserve Bank of New Zealand has heightened surveillance of the crypto sector.

The FMA has previously warned against crypto fraudsters and impersonators, including Krypto Security and Bay Exchange, neither of which is regulated by the FMA.

The country has been cautious regarding cryptocurrencies. The Finance and Expenditure Committee of the New Zealand House of Representatives issued a detailed report highlighting the risks associated with integrating crypto into the national payment system. Last month, Adrian Orr, the governor of NZ's central bank, expressed skepticism about digital currencies, particularly stablecoins, citing concerns about their stability.