A Report Commissioned by the New Zealand House of RepreStateS Finance and Expendosition Commissione and Prepared for the Country's Recoming A Cau TIOUS and Gradual Approach to Cryptocurrency Regulation. The 99-Page Report, Titled "An Inquiry into the Current and Future Nature, IMPACT and FUTURE Risks of Cryptocurrencies," was co-authored by a law firm partner from MinterEllisonRuddWatts and an associate professor of business law from the University of Auckland. The report considered public input and put forward 22 recommendations, expressing a positive outlook on digital assets and blockchain technology overall.
While acknowledging challenges like price volatility, environmental concerns, and illicit use, the report cautioned against excessive regulatory measures that could undermine the competitiveness of businesses using cryptocurrencies for payments. need to avoid premature regulation, citing the complexity of creating and implementing a comprehensive regulatory framework. The report suggested addressing issues as they arise and recommended that governments and regulators provide coherent and consistent guidance in alignment with existing laws.
The report advised monitoring regulatory developments in countries such as the US, UK, and Australia before formulating local regulatory decisions. It proposed certain measures, including the creation of a new investment category for digital assets, along with a sandbox and a personal property category, under the supervision of the Financial Markets Authority (FMA). Additionally, the report recommended establishing a subcommittee within the Financial Regulatory Commission, led by the FMA, to coordinate responses to industry challenges. The report also called for the formation of a larger working group Comprising representatives from relevant government agencies to collaborate with the digital asset sector. Finally, the report endorsed the continuation of research into central bank digital currencies.
