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 proposed conditions include:
- Full backing by funds deposited at New Zealand-registered banks and held through a bare trust.
- Redemption at face value, with no yield paid to holders.
- Ongoing obligations for issuers, including public reporting on reserves.
The consultation closes on December 18. The FMA said it had not yet made a decision; the classification and conditions remain proposals rather than final rules.