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The Reserve Bank of New Zealand (RBNZ) has clarified its stance on cryptocurrencies and stablecoins. liberation Published on Friday, June 30. In it, the RBNZ recognized both the significant risks and opportunities presented by these private finance innovations.
In the statement, Ian Woolford, the bank’s director of cash and cash, noted that cryptocurrencies and stablecoins present both significant risks and opportunities, and there is considerable uncertainty about how the industry will evolve.
However, Woolford also pointed to the need to find an optimal balance between innovation and regulation that allows for the evolution of the market.
New Zealand prioritizes strict monitoring of cryptocurrencies and stablecoins
Specifically, the RBNZ report comes days after it was revealed that New Zealand-based travel agency We Are Bamboo lost $2 million in trading cryptocurrency by using customer funds earmarked for prepaid travel across multiple platforms.
As a result, the RBNZ acknowledges that, while a regulatory approach is not necessary at this time, additional oversight is important. One of the highlights of the presentations was the need for improved data and monitoring to develop a comprehensive understanding of private money. However, the RBNZ supports aligning regulatory approaches between agencies and jurisdictions.
«We agree with other exporters that a regulatory approach is not needed at this time, but more vigilance is needed».
Woolford also noted that global harmonization is key to ensuring effective regulation, and noted that the RBNZ will continue to engage with other institutions, particularly through the Financial Regulators Council, to support healthy growth in the financial ecosystem and the industry. Other stakeholders when issues arise.
The United States is leading police operations against cryptocurrencies, while New Zealand is focused on curbing illegal activities.
Importantly, the RBNZ report underscores the warning that the global regulatory regime is changing globally. In this sense, the United States is at the center of police actions against cryptocurrencies, while New Zealand has implemented strict regulations focusing on FATF AML measures and KYC rules.
However, it is worth noting that the current rules do not contribute to the long-term stability and legitimacy of the cryptocurrency market in many jurisdictions.
In conclusion, the RBNZ’s stance on cryptocurrencies and stablecoins highlights the need for an optimal balance between innovation and regulation.
Let me conclude with this sentence from Andreas Antonopoulos: «Regulation of cryptocurrencies is essential to establish a framework of trust and security in an ever-evolving market».
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