New Zealand’s FMA Seeks Public Feedback on Regulatory Pathway for NZD-Pegged Stablecoins

New Zealand’s Financial Markets Authority (FMA) released, on 9 November, its proposed regulatory pathway for payment stablecoins pegged to and backed by the New Zealand dollar (NZD), and simultaneously launched a public consultation. Under the proposal, such stablecoins would be excluded from the definition of “financial products” under the Financial Markets Conduct Act—provided they meet specific conditions and safeguards, including being fully backed by NZD held in custody by a registered bank and ensuring users can redeem them at par value at any time. Liam Mason, FMA’s General Counsel, noted that this interim measure aims to explore a clearer regulatory framework that balances innovation incentives with market confidence; no final decision has been made, and any resulting arrangements will be integrated into the FMA’s broader digital asset regulatory framework.