The Reserve Bank of New Zealand states that “a regulatory approach to cryptocurrencies is not required at this time, but awareness needs to be increased.”

New Zealand’s central bank has stepped up oversight 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 necessary”.

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

New forms of money such as crypto and stablecoins create opportunities and risks for New Zealanders and the financial system. Have your say now about these and how we should respond: https://t.co/RE9j0ryjVk#rbnz pic.twitter.com/yvcR2tjd9y

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

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 advocacy organization BlockchainNZ, technology company Ripple and banks such as Westpac and Bank of New Zealand.

said Woolford The responses indicated 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 improved 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.. He added that best practices will become clear as foreign regimes are implemented.

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

Current New Zealand Laws They treat cryptocurrencies as a type of asset. Digital assets are governed by various financial, anti-money laundering and tax regulations that do not generally apply to cryptocurrencies.

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

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

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