Crypto ‘regulatory approach isn’t needed now’ — New Zealand central bank

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The Central Bank of New Zealand has stepped up its scrutiny of stablecoins and cryptoassets following the public offering, but has yet to call for a “regulatory approach.”

on June 30th statementIan Woolford, director of funds and cash at the Reserve Bank of New Zealand (RBNZ), said the RBNZ agreed that “no regulatory approach is needed at this time, but increased vigilance is needed”. rice field.

Woolford’s statement was accompanied by the following words: summary Of 50 stakeholder submissions to a previous RBNZ paper discussing cryptocurrencies and decentralized finance.

New forms of money such as cryptocurrencies and stablecoins pose opportunities and risks for New Zealanders and the financial system. Let us know what you think about these and how we should respond now. https://t.co/RE9j0ryjVk#rbnz pic.twitter.com/yvcR2tjd9y

— Reserve Bank of New Zealand (@ReserveBankofNZ) February 10, 2023

Respondents included local crypto advocacy group BlockchainNZ, tech company Ripple, and banks such as Westpac and Bank of New Zealand.

Woolford said the filing showed that cryptocurrencies present “substantial risks and opportunities” and that there are “uncertainties” about the development of the sector that warrant special attention. rice field.

“We agree that caution is needed. It also reinforces the need for increased data and monitoring to advance our understanding.”

The RBNZ appears to be waiting to see how other jurisdictions regulate cryptocurrencies before taking any action of its own.

“Global harmonization is essential to ensure effective regulation,” Woolford said. He added that best practices could become clearer “as overseas regimes are introduced.”

Related: Undaunted by SEC turmoil, top banks are working on blockchain interoperability

Chaina Analysis Report for 2022 Ranked New Zealand ranks 108th out of 146 in the 2022 Global Crypto Adoption Index, just behind Austria and ahead of Azerbaijan.

Under current New Zealand law, cryptocurrencies are considered a form of property. Digital assets are governed by a variety of generally applicable non-cryptocurrency-specific financial, money laundering and tax regulations.

“The problems posed by cryptoassets and other innovations do not fit neatly within the boundaries of government agencies,” Woolford said.

He added that consumer and investor protection and regulatory barriers to entry are important if the country wants to build a “reliable and efficient money and payment system.”

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