June 30, 2023 at 10:20 GMTModified date: June 30, 2023 at 10:21 GMT
June 30, 2023 at 10:20 GMT

New Zealand wants ‘increased vigilance’ not regulation

The Reserve Bank of New Zealand (RBNZ) has said today that crypto requires “increased vigilance”, while it watches how other countries manage regulation of the space.

New Zealand wants ‘increased vigilance’ not regulation

The Reserve Bank of New Zealand (RBNZ) has said that crypto requires “increased vigilance” while it watches how other countries manage their regulation of the space.

In a statement today, the country’s central bank said it is aiming for better ways of monitoring crypto, as other countries clamp down heavily on the industry.

Ian Woolford, director of Money and Cash at RBNZ, commented: “We agree with the balance of submitters that a regulatory approach isn’t needed right now, but increased vigilance is.”

His statement comes alongside the release of a summary of submissions published today, 30 June, for an earlier paper “The Future of Money — Private Innovation: Te Moni Anamata — Te Auahatanga”.

Woolford added: “The submissions reinforce our view that there are significant risks and opportunities from stablecoins and other private money innovations, but also significant uncertainties about how the sector will develop and where the optimal balance will lie.

“We agree that caution is needed, which also reinforces the need for enhanced data and monitoring to build understanding.

“We also agree that global harmonisation is crucial to ensure effective regulation. As overseas regimes are implemented, best practice may become clearer. Implementation of other regulatory regimes, such as the Financial Market Infrastructure Act could also have an impact on the cryptoassets market.

“Issues raised by cryptoassets and other innovations do not fall neatly within agency boundaries. However, issues such as consumer and investor protection or potential commercial or regulatory barriers to entry do matter for the collective vision we have for a reliable and efficient money and payment system that better meets the evolving needs of New Zealanders.

“We will continue to work with other agencies, particularly through the Council of Financial Regulators, to support healthy growth in the financial ecosystem, as well as continuing to engage with industry and other stakeholders on the issues as they arise,” Mr Woolford said.

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