The Finance and Expenditure Committee of New Zealand has prepared a report for cryptocurrency enquiry. It focuses on recommending and advising the government to prepare for regulatory policies and find a legal stance on cryptocurrencies.
As countries worldwide are adapting a regulatory framework to address digital assets and blockchain-based financial instruments, this report suggests New Zealand government to not implement ‘a fully integrated and consistent regulatory framework’ at this time.
The report is prepared by the House of Representatives and advised by Jeremy Muir, a partner at law firm MinterEllisonRuddWatts and Alexandra Sims, Associate Professor at University of Auckland.
It states that New Zealand has produced some successful blockchain businesses in many areas, however, Blockchain technology and cryptocurrencies have its challenges and risks. These challenges include the volatility in the price of cryptocurrencies, the environmental impact of cryptocurrencies and their use by criminals.
The Advisors proposes several recommendations to the government while briefing to not adapt the fully integrated regulatory framework for cryptocurrencies and blockchain as ‘it is early in the development.’ Instead, it suggest to address problems as they arise.
Advisors calls for the formation of sub committees within the country’s financial body and a separate Digital Asset agency to oversee the development of crypto and blockchain applications. It also recommends the country’s reserve bank to continue with its CBDC design work.
Also Read: New Zealand Central Bank Holds Off on Implementing Crypto Regulations
