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FinTechs belonging to this category offer financial services using crypto currencies. This category also includes FinTechs utilising blockchain and distributed ledger technologies (DLT) upon which Bitcoin and Ethereum are based, among others. FinTechs develop and do research in this field in order to create new services – e.g. crypto currency exchange markets, wallet providers, NFTs-related services, new payment services, "smart contracts" or new clearing and settling services.
Introduction
Attitude of the country towards financial services using crypto currencies
RBNZ is aware of the increasing prevalence of stablecoins and transactions through decentralised blockchains. RBNZ is considering adopting a central bank digital currency called “digital cash”, which would allow individuals and businesses to make instant payments electronically within New Zealand. RBNZ has undertaken a consultation on Digital Cash and it is preparing a business case to be put before the government in 2026.
Further, RBNZ has and will continue to publish issues papers in relation to cash in New Zealand. It is certainly possible that crypto currencies will be a standard form of payment in New Zealand within the next 10-15 years.
Payment using crypto currencies is very isolated, with a number of early adopters offering to accept crypto but this has not resulted in widespread uptake. In general there is a perception that cypto currencies and related products receive a lot of attention but have not yet lead to practical applications with wide-spread uptake, and some (like NFTs) are almost seen as scams. Crypto currenices themselves are viewed as investments or for trading.
Legal affairs
Obligations and requirements to provide financial services using crypto currencies described above
Providers of financial services must register as Financial Service Providers in accordance with the FSPA with the associated costs as outlined in our section titled FinTech.
Whether a licence is required will depend upon the types of services being provided. If the provider is offering equity securities, debt securities, managed investment products or derivatives to retail investors then they will need to consider whether they are required to get a licence. The associated fees and levies will depend upon the services or products being provided .
Additional comments regarding the legal situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area
N/A
Economic conditions
Market size for financial services using crypto currencies and biggest companies in this business area
We do not have information relating to specific market shares, revenues, and transactions.
This space is centred upon decentralised blockchains so, there are many options available internationally particularly relating to crypto wallets and crypto trading platforms.
The FMA’s 2024 Consumer Confidence Survey found that Investment in crypto currencies by New Zealanders was in the top 5 investment products respondents would consider investing in with 8% of respondents indicating they would consider investing in cryptocurrency in the 12 months following the survey.