New Zealand’s ministry of commerce and consumer affairs has received a stern warning regarding the country’s slow approach towards cryptocurrencies. Minister Andrew Bayly has emphasized the need for the Australian government to finalize its stance on crypto before it becomes too late. With the crypto sector gaining momentum in countries like the UK, the UAE, the US, South Korea, and India, New Zealand risks falling behind in fostering job opportunities and technological advancements.
In 2021, the Cabinet Legislation Committee launched a crypto inquiry initiative to assess the potential of digital assets and blockchain technology in the country. Minister Bayly has pointed out the findings of the inquiry, suggesting that New Zealand should adopt a more proactive and innovation-friendly approach towards cryptocurrencies. The government’s current ‘wait and see’ strategy is hindering the growth of sectors like fintech, gaming, and blockchain.
According to data from the Financial Markets Authority (FMA), approximately 10 percent of New Zealand’s population, around 324,000 individuals, own crypto assets. However, the country has not updated official statistics on cryptocurrency ownership since December 2022. Furthermore, there are no legal regulations in place to oversee or regulate the crypto sector, leaving it vulnerable to exploitation by malicious actors for activities such as money laundering and terror financing.
Concerns Over Scams and Consumer Protection
Following several high-profile cases of digital and online scams, the Committee launched the Scams Inquiry in 2022 to investigate the impact of these scams on victims and understand how banking processes in New Zealand could better protect consumers. Minister Bayly has expressed concerns about the need to safeguard individuals from falling prey to fraudulent schemes and unauthorized financial activities in the crypto space.
Bayly has called upon the government of New Zealand to take a proactive approach towards embracing digital assets and blockchain technology. He emphasizes the importance of industry development while considering appropriate policies to mitigate risks associated with crypto. Additionally, the country has been advised to encourage public debate and prompt further governmental action to ensure that New Zealand is positioned to leverage the opportunities and address the challenges posed by digital assets.
The urgency for New Zealand to accelerate its adoption of cryptocurrencies and blockchain technology cannot be overstated. With other nations making significant strides in embracing the crypto sector, New Zealand risks missing out on the economic benefits and technological advancements that come with it. It is imperative for the government to heed Minister Bayly’s calls for proactive measures and establish a regulatory framework that fosters innovation while safeguarding against potential risks in the cryptocurrency landscape.
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