{"id":2802,"date":"2021-03-23T18:56:11","date_gmt":"2021-03-23T18:56:11","guid":{"rendered":"https:\/\/icoholder.com\/blog\/?p=2802"},"modified":"2025-05-16T16:51:15","modified_gmt":"2025-05-16T16:51:15","slug":"new-zealand-cryptocurrency-regulation-current-legal-framework","status":"publish","type":"post","link":"https:\/\/icoholder.com\/blog\/new-zealand-cryptocurrency-regulation-current-legal-framework\/","title":{"rendered":"New Zealand Cryptocurrency Regulation: Current Legal Framework"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_75 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/icoholder.com\/blog\/new-zealand-cryptocurrency-regulation-current-legal-framework\/#Financial_Regulation_and_Consumer_Protection\" >Financial Regulation and Consumer Protection<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/icoholder.com\/blog\/new-zealand-cryptocurrency-regulation-current-legal-framework\/#Cryptocurrencies\" >Cryptocurrencies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/icoholder.com\/blog\/new-zealand-cryptocurrency-regulation-current-legal-framework\/#ICOs\" >ICOs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/icoholder.com\/blog\/new-zealand-cryptocurrency-regulation-current-legal-framework\/#Anti-Money_Laundering_Law\" >Anti-Money Laundering Law<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/icoholder.com\/blog\/new-zealand-cryptocurrency-regulation-current-legal-framework\/#Regulations_of_Cryptocurrencies_as_Financial_Securities\" >Regulations of Cryptocurrencies as Financial Securities<\/a><\/li><\/ul><\/nav><\/div>\n<p>Cryptocurrencies have become extremely popular in New Zealand and this country is <a href=\"https:\/\/coincheckup.com\/blog\/new-zealand-became-the-1st-country-to-legalize-btc-salaries\/\">the first to legalize cryptocurrency salaries<\/a>. Despite the growth of digital currencies, New Zealand\u2019s cryptocurrency regulation remains incomplete. The nation hasn\u2019t yet set specific laws to cover all activities involving these assets. However, this does not mean these sectors are unregulated. According to the Financial Markets Authority (FMA), activities related to cryptocurrencies must comply with the \u201cfair dealing\u201d rules in the Financial Markets Conduct Act 2013.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Financial_Regulation_and_Consumer_Protection\"><\/span>Financial Regulation and Consumer Protection<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Cryptocurrencies\"><\/span>Cryptocurrencies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In October 2017, the Financial Markets Conduct (FMA) published <a href=\"https:\/\/icoholder.com\/blog\/hoe-schakelt-u-airdrop-in-en-verdient-u-gratis-tokens\/\">online regulation<\/a> related to cryptocurrencies for the purpose to ensure the regulation of these digital currencies. This legislation is supported by the Financial Markets Conduct Act 2013. Thus, any entity that offers a financial service associated with cryptocurrencies must comply with this act. Moreover, <a href=\"https:\/\/casinodeps.co.nz\/new-casinos\/\">most of the new casino sites based in New Zealand<\/a> or those that offer services to gambling clients are required to register on the Financial Service Providers Register.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"ICOs\"><\/span>ICOs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Regarding the ICOs, the regulation states that each ICO is required to be verified. The majority of ICOs involve the financial service operating a value transfer service and issuing and managing payment methods. Not only can tokens be used to obtain services or goods but they are also acquired as legal tender including New Zealand dollars. Another additional guidance related to ICOs is a token that can be considered as a debt security, equity security, and interest in a managed investment scheme.<\/p>\n<p>As stated by FMA, a regulated offer is a financial product provided to retail investors in New Zealand. However, tokens offered to wholesale investors or those based outside the country is not a regulated offer but it is still subject to the FMC Act. This regulated offer conducts more substantial compliance obligations such as licensing, governance, and disclosure requirements.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Anti-Money_Laundering_Law\"><\/span>Anti-Money Laundering Law<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The anti-money laundering obligations may also apply as stated by the FMA guidance on the regulation of cryptocurrencies and ICOs. However, no regulation refers specifically to cryptocurrency exchanges stated by the FMA and other government agencies. Nevertheless, the Department of Internal Affairs (DIA) has a list of reporting entities.<\/p>\n<p>The cryptocurrency exchanges should be encouraged in New Zealand and clear and detailed anti-money laundering regulation by both the Department of Internal Affairs (DIA) and the Financial Markets Authority (FMA) should be implemented.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Regulations_of_Cryptocurrencies_as_Financial_Securities\"><\/span>Regulations of Cryptocurrencies as Financial Securities<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/www.fma.govt.nz\/compliance\/cryptocurrencies\/\">Under the FMA regulation on ICOs<\/a>, a token is considered debt security if it gives rise to dividends or interest payments. To make a regulated offer of a debt security, here are the processes that the ICO issuer should follow:<\/p>\n<ul>\n<li aria-level=\"1\">Register a product disclosure statement<\/li>\n<li aria-level=\"1\">Appoint a licensed supervisor<\/li>\n<li aria-level=\"1\">Meet fair dealing requirements<\/li>\n<li aria-level=\"1\">Respect financial reporting obligations<\/li>\n<\/ul>\n<p data-pm-slice=\"1 1 []\">The guidance verifies if an asset-backed token could be classified as debt security. Each ICO should be reviewed individually. Utility tokens can be traded on cryptocurrency exchanges or other secondary markets. These tokens are not classified as managed investment products. Profits from trading utility tokens on exchanges are not considered \u2018rights to receive a financial benefit\u2019 under a managed investment scheme.<\/p>\n<p>Regarding Equity Securities, the FMA states that a token is equity security if investors buy it or have the option to buy it. This includes equity in a New Zealand incorporated company or a corporate entity incorporated outside New Zealand. An offer of both the token and equity share provides an option to buy a share. According to the FMC Act, issuing a token through an ICO is considered a regulated offer.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cryptocurrencies have become extremely popular in New Zealand and this country is the first to legalize cryptocurrency salaries. Despite the growth of digital currencies, New &hellip; <\/p>\n","protected":false},"author":1,"featured_media":2803,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[],"class_list":["post-2802","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ico-guide"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>New Zealand Cryptocurrency Regulation: Current Legal Framework<\/title>\n<meta name=\"description\" content=\"Overview of New Zealand cryptocurrency regulation, covering laws, compliance, and the role of the Financial Markets Authority - IcoHolder.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/icoholder.com\/blog\/new-zealand-cryptocurrency-regulation-current-legal-framework\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Zealand Cryptocurrency Regulation: Current Legal Framework\" \/>\n<meta property=\"og:description\" content=\"Overview of New Zealand cryptocurrency regulation, covering laws, compliance, and the role of the Financial Markets Authority - 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