Generally, New Zealand does not come in crypto discussions, due to its small economic and geographic. Similarly to the the Australian government though, the New Zealand government has a positive outlook regarding digital currencies.
The government seeks to bolster growth of cryptocurrencies in the country by imposing minimal regulations, generally focused on protecting its citizens from fraud and prevent the use of the currency for illegal activities within the country’s borders.
of Cryptocurrency in New Zealand
Trade of cryptocurrencies and related financial services is legal according to the government of New Zealand, with companies providing such services needing to abide by the rules laid out in the Financial Service Providers Act of 2008.
Companies providing cryptocurrency services need to operate with proper documentation and have KYC (Know Your Customer) regulations in place to ensure the safety of all transactions. The government of New Zealand has also stated that it is open to providing exceptions to companies in order to promote innovation in the financial markets of New Zealand.
of ICOs in New Zealand
In November 2017, the New Zealand Financial Markets Authority (NZ-FMA) released a list of regulations to manage ICOs under the country’s legal system. According to the FMA, all ICOs are to be considered securities under the Financial Markets Conduct Act of 2013.
FMA further states that the tokens issued in ICOs would be categorized as one of four major types – debt securities, equity securities, managed investment products or derivatives, based on their economic value, with each category having their own set of regulations that would need to be complied with.
The FMA further noted that ICOs operating in New Zealand must be members of a dispute regulation scheme in order to protect their customers and would also need to comply with anti-money laundering regulations.
Markets in New Zealand
The positive role of the New Zealand government in supporting cryptocurrencies has helped digital financial market grow and evolve there , which in turn could help bring in traditional investors as well.. The government is also asking citizens for their input when it comes to to promoting cryptocurrencies in the country.
All these measures make New Zealand an interesting destination to watch with regards to crypto market. If New Zealand plays its cards right in 2018, it can become one of the most important cryptocurrency markets in the world.
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