The Financial Markets Authority (FMA) of New Zealand has initiated a consultation process regarding the regulatory status of stablecoins. The proposal, launched on November 9, 2026, suggests exempting specific payment-focused stablecoins from the financial product rules defined in the Financial Markets Conduct Act.
To qualify for this exemption, stablecoins must be fully backed by New Zealand dollars deposited in registered banks. Furthermore, issuers must guarantee that holders can redeem their tokens at a 1:1 ratio at face value. This framework aims to treat such assets as payment instruments rather than investment products.
This initiative builds upon a March 2026 decision where the FMA ruled that NZDD stablecoins do not constitute financial products. The current proposal seeks to establish a standardized, repeatable pathway for other issuers. The regulator views this as an interim measure pending the introduction of comprehensive digital asset legislation.
The FMA is currently accepting feedback from financial institutions, digital asset companies, and consumers. By defining clear criteria for compliance, the regulator intends to provide issuers with regulatory certainty while ensuring that consumer protections, specifically the ability to redeem tokens at face value, remain a priority.
