The report prepared for the New Zealand Parliament has recommended a slow and agile approach to crypto regulation. The report titled “Inquiry into the current and future nature, impact, and risks of cryptocurrencies” was commissioned by the Finance and Expenditure Committee of the New Zealand House of Representatives and offers 22 recommendations.
The report takes a favorable view of digital assets and blockchain technology as a whole. It cautions against excessive restrictions, noting that they would reduce the viability and competitiveness of businesses that accept payments in cryptocurrencies. The report also advises against trying to regulate too early, as it would be a complex endeavor that the government and regulators may not be equipped to manage.
Instead, the report recommends addressing problems as they arise and creating coherent and consistent guidance on the treatment of digital assets under current law. The report suggests that legislators can observe regulatory progress in countries like the United States, United Kingdom, and Australia before making local decisions.
Some regulatory measures are necessary, and the report recommends the creation of a new class of investment for digital assets with a sandbox. It also proposes the formation of a new Council of Financial Regulators subcommittee to address industry issues. The report recommends the formation of a larger working group with representatives from government agencies to collaborate with the digital asset industry. Additionally, the report concludes that research on central bank digital currency should continue.