New Zealand’s Financial Markets Authority (FMA) is seeking feedback on a proposed class designation for stablecoins denominated in and backed by New Zealand dollars, according to a TechFlow report published on November 9, 2026, at 17:26:34 UTC+8, citing an FMA announcement.
Under the proposal, stablecoins meeting specified conditions would not be treated as financial products under the Financial Markets Conduct Act. The FMA said it had not yet made a decision.
Proposed conditions
Qualifying stablecoins would need to:
- Be fully backed by funds deposited at New Zealand-registered banks and held through a bare trust.
- Be redeemable at face value.
- Pay no yield to holders.
Issuers would also have to meet ongoing requirements, including public reporting of reserves.
The consultation closes on December 18. The proposed treatment would apply only to stablecoins meeting the specified conditions, rather than to stablecoins generally.