On June 30, the Reserve Bank of New Zealand (RBNZ), the country’s central bank, said that it is increasing regulation of cryptocurrencies and stablecoins.
The Reserve Bank of New Zealand (RBNZ) is aware of the dangers connected with these assets and is closely monitoring the development of cryptocurrencies and stablecoins. However, the RBNZ is also aware of the uncertainties around the growth trajectory of this burgeoning asset class globally.
The RBNZ is monitoring the growth of cryptocurrencies and stablecoins but is also aware of the risks associated with these assets. The statement by Ian Woolford, Director of Money and Cash, noted that the growth trajectory of this asset class is uncertain globally.
Woolford said that some of the submissions called for stricter regulation of the cryptocurrency industry, while others called for a more flexible approach that would encourage innovation. Woolford said that he agreed with both sides and that the RBNZ needs to “strike a balance between protecting investors and fostering innovation.”
The RBNZ listened to the views of stakeholders in the cryptocurrency industry during a consultation period that ran from December 2022 to April 2023.
BlockchainNZ, Ripple, and EasyCrypto were among the participants who shared their thoughts on the potential benefits and challenges of cryptocurrencies.
The RBNZ is not rushing into cryptocurrency regulation and is taking the time should carefully evaluate the best course of action for New Zealand. In order to make better choices, the RBNZ is keeping an eye on how other nations are handling cryptocurrency regulation.
Governments all across the world are scrutinizing the cryptocurrency market more and more closely. The central banks of the United Arab Emirates (UAE) and Hong Kong are working together to introduce crypto regulations, while Norway’s apex bank has called for tailored crypto policies.