Around 14% of New Zealanders surveyed in new research say they own, or have previously owned, cryptocurrencies like Bitcoin. Photo / Getty Images
Around 14% of New Zealanders surveyed in new research say they own, or have previously owned, cryptocurrencies like Bitcoin. Photo / Getty Images
THREE KEY FACTS:
The Government permits the trading and holding of Bitcoin and other cryptocurrencies, but they are not considered legal tender.
Investing in cryptocurrency is legal in NZ, but note that regulations in this area are sparse, so if something goes wrong, you may have difficulty getting some kind of legal remedy
Around 14% of New Zealanders surveyed in new research say they own, or have previously owned, cryptocurrencies like Bitcoin in their investment portfolios.
Hays Niwa is a customer support pro at Easy Crypto. She is passionate about helping Māori navigate the world of Web3 through her educational platform. She has created resources focused on teaching children the foundations of Web3, making resources accessible from an early age.
OPINION
Crypto investors are often pigeonholed as highly tech-savvy, male and mostly Pākeha, but in New Zealand, this couldn’t be further from the truth. In reality, many Māori, Pacifica and Indians are often confident in investing in crypto; and even more open to this type of investment than other assets (outside of KiwiSaver).
I’ve worked as an advocate for Māori in the crypto space for several years, and I’ve noticed that “crypto-friendly” (i.e. willing to invest) doesn’t always equate to being scam-savvy. Unless we keep on working on designing safer, more secure technology for a rising tide of beginner investors (including Māori, Pasifika and Indians), the risk of these investors falling prey to scams will only grow bigger as fraudsters become more and more sophisticated in their approach.
Here are three ways crypto companies (including exchanges) can facilitate safer investment:
1. Stop assuming investors have the necessary scam knowledge
Scammers are becoming more creative and aggressive in their tactics, often targeting beginner crypto investors with phishing, elaborate Ponzi schemes or as a fake exchange. Unfortunately, many people don’t have the experience to recognise these threats. It’s really important for crypto companies to assume that customers may not be aware of these dangers and to educate them about the latest scams out there on an ongoing basis, including publishing practical security tips like enabling multi-factor authentication (MFA) on accounts, using strong passwords and how to recognise phishing attempts. This education shouldn’t just come from exchanges; but should be embraced as an industry-wide standard by all investment platforms to protect investors across the board.
2. Make the user experience (UX) simpler and more inclusive
The crypto world can be intimidating for new investors, especially when it comes to how to keep your assets secure. Complex processes like long “seed phrases” (passwords for crypto wallets) often put people off securing their crypto. It is vital that we simplify the user experience by making wallets easier to manage and recover (if you forget your password), removing the technical barriers that scare people off.
Additionally, offering crypto information in multiple languages is crucial for a more inclusive environment. For instance, Easy Crypto recently launched the world’s first cryptocurrency platform translated into te reo Māori, ensuring the Māori community can access crypto information in their own language.
3. Tap into tech for better protection
Crypto companies should adopt a multi-faceted approach to combating fraud which combines advanced technology with strict regulatory compliance. This should include ensuring every customer’s identity is verified to help prevent fraudulent accounts from being created and using automatic and manual measures to monitor for suspicious activity so that a customer support team can take immediate action if any is detected. Users should “expect” this protection; and make sure they’re getting it by doing their homework.
Smart technology can help use behavioural analytics and transaction monitoring systems to flag unusual activity on an account in real-time, enabling faster intervention when something goes wrong. Added to this, exchanges should enforce security measures like transaction limits to prevent significant losses if an account is compromised.
As the popularity of crypto continues to rise among Māori, Pasifika, and Indian communities, we must ensure that the platforms they use are safe, easy to understand and equipped with technology to safeguard their assets. With the right combination of education, technology, and user experience, we can help protect New Zealand’s most avid crypto investors from unnecessary risks.
