New Zealand Central Bank: No Need for Crypto Regulation Right Now

RBNZ Increases Surveillance of Stablecoins and Crypto-Assets

The New Zealand central bank is increasing its surveillance of stablecoins and crypto-assets in response to public feedback, but has not proposed a regulatory approach.

Ian Woolford, the Reserve Bank of New Zealand’s Director of Money and Cash, declared in a June 30th statement that the RBNZ concurs that, at this time, no regulatory measures are required but heightened awareness is.

Alongside Woolford’s statement was a synopsis of 50 stakeholder reactions to a prior RBNZ paper that discussed crypto and decentralized finance.

Respondents included BlockchainNZ (the country’s crypto advocacy body), tech company Ripple, Westpac, and the Bank of New Zealand.

Woolford noted that the submissions indicated that crypto had both “significant risks and opportunities” as well as “uncertainties” surrounding its progression, necessitating extra focus.

The RBNZ appears to be observing how other authorities are regulating cryptocurrency before deciding on their own course of action.

“Woolford asserted that global harmonization is essential for successful regulation,” he continued, “and that best practices may become more evident as foreign systems are put into effect.”

Undeterred by SEC upheaval, major banks strive to ensure blockchains are interoperable.

New Zealand’s Crypto Regulation and Adoption Status

In Chainalysis’ 2022 Global Crypto Adoption Index, New Zealand was ranked 108th out of 146, placing it just behind Austria and ahead of Azerbaijan.

In New Zealand, crypto is legally viewed as a type of property. The regulation of digital assets is subject to various financial, money laundering, and tax regulations that are not limited to crypto.

“Woolford remarked that the questions posed by cryptoassets and other developments do not conveniently fit into the purview of any one agency,”

He emphasized that if the nation desires to have a dependable and effective money and payment system, then consumer and investor protections, as well as regulatory obstacles to entry, are of great importance.

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