The Minister of Commerce and Consumer Affairs of New Zealand, Andrew Bayly, has raised concerns over the country’s slow adoption and experimentation with digital assets and blockchain technology. He recommended a revamp of the regulatory approach towards digital assets and highlighted the risks of the current “wait and see” approach that New Zealand is taking. To address these issues, Bayly proposed eight key recommendations that aim to put New Zealand back on the global crypto wave. These recommendations include policies and regulations to encourage digital asset development, collaboration between government and industry players, addressing skill shortages, creating training and educational resources, tax incentives, Anti-Money Laundering provisions, and designing an in-house central bank digital currency (CBDC).
Despite Bayly’s recommendations, Reserve Bank of New Zealand Governor Adrian Orr expressed skepticism towards the viability of CBDCs as a true substitute for fiat money. Orr argued that CBDCs are not stable and questioned the use of Bitcoin as a means of exchange, store of value, or unit of account. He also criticized stablecoins, stating that they rely solely on the balance sheet of the entity offering them. Orr emphasized the importance of transparency in addressing the speculative nature of cryptocurrencies, clarifying that they are not official currency or central bank cash. Bayly’s recommendations, on the other hand, aim to position New Zealand as a participant in the evolving digital asset landscape by advocating for a more supportive environment and proactive measures.
The Reserve Bank of New Zealand is increasing surveillance of the crypto sector to boost digital asset regulation in the country. The financial watchdog has issued warnings against crypto fraudsters and impersonators who mislead citizens with promises of cryptocurrency services. Recently, the Financial Markets Authority (FMA) of New Zealand flagged an unlicensed crypto exchange clone of BTCSWE, warning customers against falling for scams. The regulator also added two fake entities, BTCSWE and Grandeur Capital Pro, to its warning list, cautioning the public against fraudulent activities in the crypto sector. The efforts to increase surveillance aim to protect consumers and ensure the integrity of the digital asset industry in New Zealand.
Andrew Bayly’s recommendations for revamping digital asset regulation and embracing blockchain technology in New Zealand reflect the need for a coordinated global regulatory approach. By fostering collaboration between the government and industry players, addressing skill shortages, and creating educational resources, New Zealand aims to position itself as a participant in the evolving digital asset landscape. Despite Reserve Bank of New Zealand Governor Adrian Orr’s skepticism towards CBDCs and stability of cryptocurrencies, initiatives to increase surveillance of the crypto sector demonstrate the government’s commitment to protecting consumers and preventing fraudulent activities in the digital asset industry. As New Zealand navigates the complexities of regulating digital assets, a balance between innovation and consumer protection will be crucial in shaping the country’s approach towards blockchain technology.
