FMA stablecoin regulation: New Zealand FMA Consults on Approach for NZD Payment Stablecoins

The FMA stablecoin regulation consultation in New Zealand covers a proposed approach for New Zealand dollar referenced and backed stablecoins designed for payments rather than investment.

Under the proposal, qualifying stablecoins would no longer be treated as financial products under the Financial Markets Conduct Act, provided they meet specific requirements and safeguards.

The approach would apply only to stablecoins that are referenced and backed by New Zealand dollars held at a registered bank and that are redeemable at face value, according to the proposal.

What the FMA stablecoin regulation proposal would cover

FMA General Counsel Liam Mason said the authority wants to test whether the proposal would provide a clearer and more appropriate regulatory pathway for these products while supporting innovation and maintaining confidence in New Zealand’s financial markets.

The FMA described the proposal as an interim step while broader work on the future regulation of digital assets continues.

Stablecoins are digital tokens designed to maintain a stable value, usually by being linked to a currency such as the New Zealand dollar, and can be used to make payments and transfer value using digital technology.