The Reserve Bank of New Zealand has announced that it will not propose a regulatory strategy towards stablecoins or cryptocurrencies but instead recommend increased vigilance.

Ian Woolford said that the issues raised by crypto assets and other innovations are not neatly contained within the agency boundaries. “However issues like consumer and investor protection, or potential commercial or regulated barriers to entry are important ….”

It came to this conclusion after receiving fifty submissions from various stakeholders in a consultation process it began in December 2022. It sought comments on an Issues paper on Private Innovation which discussed the growth of the crypto asset market.

announced that “the submissions reinforced our belief that there are both risks and opportunities in the sector, as well as significant uncertainty about the development of the sector and the optimal balance,” “We agree that caution is necessary. We do not propose a regulatory response for the time being.

The RBNZ has revealed its position on central-bank digital currency (CBDC) despite the fact that the focus was on the possible uses of cryptoassets for money.

The announcement stated that “while we are exploring the possibility of a CBDC, we’ve not made a decision on the need for one.” If we introduce a CBDC this would not replace cash that would be available.

Binance registered in New Zealand as a provider of financial services, but Huobi stopped providing derivatives trading to the country.

Parikshit Miishra is the editor.