The Reserve Bank of New Zealand says, “Cryptocurrencies do not require a regulatory approach at this time, but greater awareness is necessary.”

New Zealand’s central bank has stepped up monitoring of stablecoins and crypto assets following public demands, but has stopped short of calling for a regulatory approach.

Ian Woolford, Director of Money and Money, Reserve Bank of New Zealand declared On June 30 The RBNZ agrees, “A regulatory approach is not needed at this time, but greater vigilance is needed.”

A. with Woolford’s report Summary 50 Stakeholder contributions to previous RBNZ document It discussed cryptocurrencies and decentralized finance.

New forms of money, such as cryptocurrencies and stablecoins, create opportunities and risks for New Zealanders and the financial system. Have your say now about them and how we should respond:

Respondents include cryptocurrency watchdog BlockchainNZ, technology giant Ripple and banks including Westpac and Bank of New Zealand.

said Woolford The responses show that there are “significant risks and opportunities” for cryptocurrencies and “uncertainties” about the growth of the sector that require additional attention:

“We acknowledge the need for caution, which reinforces the need for better data and monitoring to build understanding.”

Obviously, The RBNZ is waiting to see how other jurisdictions fare Regulating cryptocurrencies before making his own moves.

“Global harmonization is critical to ensure effective regulation,” Woolford said.. Best practices will become clear as regimes are used abroad, he said.

A chain study report in 2022 ranked New Zealand ranks 108 out of 146 in its 2022 Global Crypto Adoption Index, Just behind Austria and ahead of Azerbaijan.

Current Laws of New Zealand They treat cryptocurrencies as a type of asset. Digital assets are governed by various non-cryptocurrency financial, anti-money laundering and generally applicable tax regulations.

“The issues raised by crypto assets and other innovations clearly do not fall within the purview of the agencies,” Woolford said.

He added that Consumer and investor protections, along with regulatory barriers to entry, are critical if the country is to develop a “trusted and efficient monetary and payment system”.

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