New Zealand’s FMA proposes exemption path for NZD-backed stablecoins

The regulator is seeking feedback on letting fully backed, 1:1 redeemable stablecoins sit outside financial product rules New Zealand’s markets regulator wants to stop treating certain stablecoins like investment products. The Financial Markets Authority (FMA) opened a consultation on November 9, 2026, on a proposal to exempt qualifying New Zealand dollar-backed stablecoins from the financial product rules in the Financial Markets Conduct Act, better known as the FMC Act. What the FMA is proposing The proposal covers what the FMA calls payment stablecoins, meaning tokens that are referenced to, and backed by, the New Zealand dollar. Not every NZD-linked token gets a free pass. A stablecoin would only qualify if it meets a specific set of safeguards laid out in the proposal. The first safeguard concerns reserves. Qualifying coins must be fully backed by New Zealand dollars held at registered banks. The second safeguard concerns getting your money back. Holders must be able to redeem their tokens at face value, on a 1:1 basis. Meet both conditions, and the stablecoin would be exempt from being classified as a financial product under the FMC Act. FMA leadership has stressed that stabl...