The New Zealand central bank is increasing its monitroing of stablecoins and digital currencies in response to public comments, but it has stopped from setting a legislative approach.
Director of Money and Cash at the Reserve Bank of New Zealand, Ian Woolford, stated in an announcement on June 30 that the RBNZ affirms that “a legal approach isn’t required right now, but greater surveillance is.”
A summary of 50 stakeholder comments on a previous RBNZ document discussing cryptocurrency and decentralised finance, was provided along with Woolford’s statement.
Banks including Westpac and the Bank of New Zealand, as well as the nation’s crypto advocacy group BlockchainNZ and technology startup Ripple, participated in the survey.
According to Woolford, the comments revealed that cryptocurrency has “essential risks and opportunities” as well as “uncertainties” concerning the sector’s growth.
However, we both agree that diligence is necessary, which highlights the need for improved data and tracking to foster understanding.
The RBNZ appears to be holding back on taking any action until it sees how other countries handle cryptocurrency regulation.
According to Woolford, “global harmonisation is essential to guarantee effective regulation.” He noted that as foreign systems are put into effect, excellent practises can become clearer.
New Zealand was placed 108th out of 146 countries in a Chainalysis research from 2022, barely ahead of Azerbaijan and just behind Austria.
The present legal framework in New Zealand regards cryptocurrency as a type of property. Non-crypto-specific Financial, anti-money laundering and tax laws that are usually applicable also apply to digital currencies.
According to Woolford, “issues highlighted by digital currencies and other technologies do not neatly fit within authority boundaries.”
Woolford continued by saying that regulatory entry hurdles, investor and customer safety are important if the nation wishes to have a “reliable and effective monetary and payment system.”
