Reserve Bank of New Zealand: Cryptocurrencies “do not currently require regulatory measures”

Reserve Bank of New Zealand: No need for crypto regulation at present

Author: JESSE COGHLAN, COINTELEGRAPH; Translation: Matsumi, Blocking

After public submissions, the Reserve Bank of New Zealand is stepping up its monitoring of stablecoins and crypto assets, but not calling for regulatory action.

Ian Woolford, director of currency and cash at the Reserve Bank of New Zealand, said in a statement on June 30 that the bank agreed that “there is no need for regulatory action at this stage but vigilance is needed.”

Woolford’s statement came with a summary of a paper discussing crypto and decentralized finance submitted by 50 stakeholders to the Reserve Bank of New Zealand.

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Interviewees included the country’s cryptocurrency advocacy group BlockchainNZ, tech company Ripple, and banks such as Bank of the West Pacific and the Bank of New Zealand.

Woolford said the submissions showed “significant risks and opportunities” in cryptocurrency and that the industry’s development was “uncertain,” making it necessary to pay extra attention:

“We agree that caution is required, which reinforces the need for increased data and monitoring to build understanding.”

The Reserve Bank of New Zealand appears to be waiting to see how other jurisdictions regulate crypto before taking action.

“Global coordination is crucial to ensuring effective regulation,” Woolford added, noting that with the implementation of overseas regimes, best regulatory practices may become clearer.

New Zealand ranks 108th out of 146 countries in the 2022 Chainalysis report on global cryptocurrency adoption, just behind Austria and ahead of Azerbaijan.

The index ranks all countries according to “grassroots cryptocurrency adoption rates.” Data source: Chainalysis

Current New Zealand law considers cryptocurrency a form of property. Digital assets are governed by a variety of generally applicable financial, anti-money laundering, and tax regulations that are not specific to cryptocurrency.

“Issues arising from crypto assets and other innovations are not entirely within the scope of an institution,” Woolford said.

He added that if the country wants to create a “reliable and efficient currency and payment system,” consumer and investor protection as well as regulatory barriers to entry are indeed important.

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