Minister for Commerce Andrew Bayly responded to a legislative committee’s inquiry by saying that New Zealand should encourage the expansion of the cryptocurrency industry and regulate it using an evidence-based approach.
After an investigation into the possible effects and hazards posed by the industry, the Finance and Expenditure Committee made recommendations in a report. The response, which requires cabinet approval, meets those concerns.
“I propose that the Government response indicates that the Government wishes to support industry growth and will continue to proactively consider the recommendations made in the Inquiry,” Bayly wrote in her reply. “I also propose the response notes that the Government will monitor international developments and take an evidence-based approach to regulation.”
According to Bayly, the research also highlighted that New Zealand may miss out on advantages resulting from industry advancements due to its “wait and see” strategy.
According to this perspective, New Zealand “should take a more proactive and innovation-friendly approach to digital assets and blockchain (including cryptocurrencies).” As said, the central bank of New Zealand is not looking into regulating cryptocurrency.