New Zealand’s Commerce Minister cautions leaders about the importance of not being sluggish in exploring cryptocurrencies.
Minister Andrew Bayly has urged the Australian government to determine its position on cryptocurrency before it becomes too late.
New Zealand’s Ministry of Commerce and Consumer Affairs has cautioned the country’s leaders against adopting a sluggish stance towards cryptocurrencies. In a recent development, Minister Andrew Bayly has urged the Australian government to solidify its position on crypto before it becomes too late. This is a critical moment as the cryptocurrency sector is beginning to take root in welcoming nations, creating job and business opportunities. Countries like the UK, the UAE, the US, South Korea, and India are swiftly embracing the Web3 sector.
Bayly, serving as the Minister of Commerce and Consumer Affairs in New Zealand, has expressed concerns that the country’s ‘wait and see’ approach is hindering its growth in fintech, gaming, blockchain, and other sectors.
In 2021, the Cabinet Legislation Committee initiated a crypto inquiry project. Referring to the findings, Bayly recommends that the government take a more proactive approach to cryptocurrency.
“The cryptocurrency inquiry centers advocate for a more proactive and innovation-friendly approach to digital assets and blockchain, including cryptocurrencies, in New Zealand. Therefore, I believe that the government’s strategy concerning digital assets should foster industry development while addressing potential risks through appropriate policy measures,” stated Bayly in a published coversheet.
In 2022, data from the Financial Markets Authority (FMA) indicated that approximately 10 percent of New Zealand’s population, around 324,000 individuals, were reportedly cryptocurrency asset owners. However, official updates on the number of cryptocurrency holders in New Zealand have not been provided by the country since December 2022.
Furthermore, New Zealand has yet to establish legal frameworks to regulate the cryptocurrency sector. This lack of regulation not only exposes the country’s cryptocurrency industry to exploitation by malicious actors but also increases the risk of facilitating illicit activities such as money laundering and terrorism financing.
“In 2022, the Committee initiated the Scams Inquiry in response to numerous notable cases of digital and online scams resulting in victims losing substantial amounts of money. The Committee expressed concerns regarding the detrimental effects of these scams on victims’ lives and aimed to explore ways in which banking procedures in New Zealand could enhance consumer protection,” stated Bayly’s coversheet.
In general, the minister has called upon the New Zealand government to adopt a proactive stance in exploring digital assets and blockchain technology. Furthermore, it has been recommended that the country encourages more public discourse and encourages further deliberation and action by the government to ensure New Zealand is adequately prepared to embrace the opportunities, challenges, and risks posed by digital assets.
