In a research titled “Inquiry into the current and future nature, impact, and risks of cryptocurrencies,” commissioned by the Finance and Expenditure Committee of the New Zealand House of Representatives in 2021, the legislative body of New Zealand has suggested a slow, flexible method for the regulation of the cryptocurrency.
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New Zealand Considers Regulating Crypto
The 99-page research, written jointly by a lawyer at the legal business MinterEllisonRuddWatts and an assistant professor of business law at the University of Auckland comes amid an abrupt regulatory uncertainty.
22 Suggestions Included in the Conclusion
The researchers reviewed prior public feedback to make 22 suggestions as the conclusion. Unnecessary constraints, according to the research, would “reduce the viability and competitiveness of such businesses as purchasers increasingly make payments in cryptocurrencies.”
The report reads: “Creating and implementing an integrated [regulatory] framework would be a complicated endeavour. […] Based on our understanding, agencies are not resourced or equipped to manage this.”
New Council of Financial Regulators Subcommittee
The report recommends that the FMA chair a new Council of Financial Regulators subcommittee to offer guidance and an integrated response to “issues facing the industry.”
A British solicitor, Joshua Rosenberg noted: “We recommend that the Government adopt a technologically neutral approach to regulation of the digital asset space, tailoring measures in relation to digital assets and related services and technology as required to deal with material risks associated with them.“
Crypto Firms Setting Up Offices in New Zealand
Notably, authorities and law enforcement departments in New Zealand are undertaking efforts to create a regulatory structure for the crypto ecosystem in their jurisdiction.The leading cryptocurrency exchange, Binance launched its operations in New Zealand last October after receiving a license to function as a financial services company in the region.
In 2021, the New Zealand central bank joined a number of monetary authorities exploring releasing its own digital currencies and expressed interest in the possibility of using central bank digital currency (CBDC).
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