New Zealand’s ministry of commerce and consumer affairs have been cautioned against maintaining a slow approach towards cryptocurrencies. The current minister, Andrew Bayly, has reached out to the Australian government, emphasizing the need to establish a clear stance on crypto before it’s too late. This plea comes at a time when the cryptocurrency sector is gaining traction in various countries like the UK, the UAE, the US, South Korea, and India, creating job opportunities and boosting business ventures.
Bayly, the minister of commerce and consumer affairs in New Zealand, has raised concerns about the country’s ‘wait and see’ strategy hindering growth in vital sectors such as fintech, gaming, and blockchain. In 2021, the Cabinet Legislation Committee initiated a crypto inquiry project, which highlighted the necessity for a more proactive approach towards digital assets and blockchain. Bayly stressed that government policies concerning digital assets should promote industry development while addressing potential risks appropriately.
Statistics on Crypto Ownership
Data from the Financial Markets Authority (FMA) revealed that approximately 10 percent of New Zealand’s population, totaling about 324,000 individuals, owned crypto assets in 2022. However, there has been no official update on the number of cryptocurrency holders in the country since December 2022. New Zealand lacks regulatory frameworks to govern the crypto sector effectively, making it vulnerable to exploitation and abuse for illicit activities like money laundering and terrorist financing.
Scams and Consumer Protection
Following a series of high-profile digital and online scams that resulted in significant financial losses for victims, the Committee launched the Scams Inquiry in 2022. The objective was to investigate the impact of these scams on individuals and assess how banking processes could enhance consumer protection in New Zealand. Bayly emphasized the importance of safeguarding consumers against fraudulent schemes and improper financial practices prevalent in the crypto market.
Overall, Minister Bayly has urged the New Zealand government to adopt a proactive approach towards understanding and embracing digital assets and blockchain technology. He recommended fostering public discourse and encouraging further deliberation by policymakers to ensure that New Zealand can capitalize on the opportunities presented by digital assets while effectively managing associated risks. It is imperative for New Zealand to reassess its approach towards cryptocurrencies to remain competitive in the evolving landscape of financial technology.
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