New Zealand’s Financial Markets Authority (FMA) has launched a consultation on stablecoins, with a narrow scope targeting which stablecoins will not be treated as financial products. The Ministry of Business, Innovation and Employment is separately exploring a revision of payment regulations, including for payment stablecoins. The consultation runs through to December 18.
The FMA has already declared the NZDD stablecoin, issued by ECDD Holdings, as not a financial product. Without that ruling, the NZDD and most stablecoins would be classified as debt securities. The FMA believes that such determinations avoid hesitancy among digital asset exchanges about engaging with products that might otherwise be treated as securities. A key aim is also to avoid the need for rulings on a case by case basis. The FMA is therefore consulting on which stablecoin attributes would allow an automatic designation that a digital asset is not a financial product.
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