New Zealand's FMA Calls Out Two Suspected FX Scams

The Financial Markets Authority (FMA) of New Zealand, the government agency responsible for financial Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term, has yet again updated its warning list to include two new entities this Wednesday.

The warnings published by the Kiwi regulator today are against Dang Kang International Group, an entity based in New Zealand, and Profitix and Enigma GRC Limited, which provides an address in London.

According to the regulator, it has flagged Dang Kang International Group for a number of reasons. Namely, the entity is not registered, licensed, or regulated in New Zeland despite claims on its websites.

FCA warns against Dang Kang International Group

Furthermore, the FMA is not the first regulator to warn against Dang Kang. Towards the end of July this year, the Financial Conduct Authority (FCA) also posted a warning against the company, stating it was a clone firm.

Because of these reasons, the New Zealand watchdog believes Dang Kang International Group, which claims to facilitate foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) and contracts-for-difference (CFD) trading, could be involved in a scam.

The FMA provides the following websites as belonging to the entity: https://en.dk-fc.com/ or https://en.dk-tnt.com/ or https://en.fc-dkg.com/ or https://en.dk-fca.com/ or https://en.d-fca.com/.

On one of its website, the company claims: “DangKang International Group Limited (DKFC) is headquartered in the UK and its management has years of industry experience. Adhering to the tenet of "transparency" and "convenience", the company takes multiple measures to build a benchmark image of foreign exchange trading. Customer funds are stored in independent trust accounts, and the security of funds is guaranteed.”

FMA flags Profitix and Enigma GRC Limited

Profitix and Enigma GRC Limited also claim to offer trading in a number of assets such as forex, commodities, shares, indices and more. The regulator provides two URLs that the entity operates from - www.profitix.com and www.incomeclass.net.

“We recommend exercising caution before dealing with Profltlx and Enigma GRC Limited as both entities are not listed on the FSPR and are not incorporated in New Zealand. Individuals from Profitix have been contacting New Zealand residents with investment offers and this has the hallmarks of a scam,” the warning published today states.