The Reserve Bank of New Zealand (RBNZ) is stepping up its scrutiny of the country’s central bank, cryptocurrencies and stablecoins. Said June 30th.
RBNZ Funds and Cash Director Ian Woolford said in a statement:
“…no regulatory approach is required at this time, but increased vigilance is required.”
The RBNZ’s move is in line with responses received from industry insiders in a consultation document released late last year. Ripple, a blockchain-based payment protocol, and Westpac, one of Australia’s four largest banks, submitted answer In the RBNZ consultation document.
Woolford said the response supports the central bank’s view that cryptocurrencies and stablecoins carry “substantial risks” and opportunities. he added
“We agree that caution is needed. It also reinforces the need for increased data and monitoring to advance our understanding.”
However, central banks are taking a wait-and-see approach when it comes to regulating cryptocurrencies. Woolford said effective crypto regulation requires “global harmonization”. And as countries around the world introduce regulations, “best practices may become clearer.”
In the meantime, the central bank will continue to work with regulators through the Financial Regulatory Commission to “support healthy growth” in markets, Woolford said. He added that the RBNZ will also continue to discuss emerging cryptocurrency issues with industry players.
Cryptocurrencies are treated as personal property. Current law You will be subject to income tax in your country.
The problems posed by cryptocurrencies “do not fit neatly within the boundaries of government agencies,” Woolford said. But issues such as investor protection and regulatory barriers to entry are critical to building a “reliable and efficient money and payment system,” he added.
CryptoSlate first published an article calling for “increased vigilance” against cryptocurrencies rather than regulation by the Bank of New Zealand.