Crypto in New Zealand is set to be tightened by the government’s regulation grip says the Reserve Bank of New Zealand. However, they are not looking at immediate regulation.
Central Bank Director Ian Woolford confirmed that while a regulatory approach might not be necessary at this stage, there is a need for “increased vigilance”.
Monitoring Crypto: Taking Cues from Stakeholder Submissions
An earlier paper from the Reserve Bank garnered 50 submissions from various stakeholders, including BlockchainNZ, tech giant Ripple, and major banks like Westpac and Bank of New Zealand. These submissions, according to Woolford, illuminated both the “significant risks and opportunities” and the “uncertainties” surrounding “Crypto New Zealand” that calls for increased scrutiny.
Global Harmonization: The Crypto New Zealand Vision
The Reserve Bank is keen on observing how other regions are handling crypto regulations before making its move. Woolford strongly believes that “global harmonization is crucial to ensure effective regulation”. Best practices, he said, will become clearer as overseas regimes are put into action.
Crypto in New Zealand: Current Standing and Considerations
According to a 2022 Chainalysis report, New Zealand ranks 108th out of 146 on the Global Crypto Adoption Index, nestled between Austria and Azerbaijan. New Zealand’s existing laws view crypto as a form of property, subject to financial, money laundering, and tax regulations.
The central bank acknowledges the challenges posed by crypto-assets and innovations, particularly as they blur the lines of agency jurisdiction. Woolford stressed the importance of consumer and investor protection and tackling regulatory barriers to foster a “reliable and efficient money and payment system.”