By
Svetlana Soroka
April 29th, 2024
In a bid to promote education and awareness, the ministry has proposed developing training and educational resources on digital assets and blockchain for educational institutions and professionals in the government and industry sectors.
New Zealand’s Ministry of Commerce and Consumer Affairs has proposed a series of measures to embrace crypto innovations and nurture the ecosystem’s growth in the island nation.
The ministry, led by Andrew Bayly, is concerned that New Zealand’s “wait and see” approach towards the emerging economy could lead to missed opportunities.
Proposed Measures for Crypto Adoption in New Zealand
One of the measures proposed by Bayly in response to inquiries from the country’s Finance and Expenditure Committee regarding cryptocurrencies is for New Zealand to establish policy settings that promote the development of digital assets and blockchain technology within the country.
In an official paper released on Wednesday, the minister also recommended that the government consider implementing appropriate policies to manage crypto-related risks.
However, the ministry does not advocate for adopting a fully integrated regulatory system. Instead, it suggests that government agencies provide more consistent and informed guidance on how existing legislation and regulatory rules apply in the digital asset space.
Bayly also proposed that the government classify digital assets used for investment purposes as a new category of “financial advice product”. According to him, this classification would bring the asset class under the regulated financial advice and client money–client property services regimes.
Furthermore, in a bid to promote education and awareness, the ministry has proposed developing training and educational resources on digital assets and blockchain for educational institutions and professionals in the government and industry sectors.
Addressing Skills Shortages in the Digital Asset Sector
In terms of crypto taxation, the ministry advised the country’s tax agency, Inland Revenue, to collaborate with the digital asset sector in New Zealand to explore the need for tax incentives for service providers.
Additionally, Bayly recommended that the government introduce initiatives to enhance collaboration between government agencies and industry stakeholders. This includes creating a cross-agency working group to spearhead the development of policies for digital assets in New Zealand.
The ministry has also suggested expanding the skills shortages list to include individuals with expertise in digital assets and blockchain technologies.
The move, in consultation with industry players, could help address the growing demand for skilled professionals in the sector. Bayly disclosed that some of these recommendations are long-term and are recommended to make the digital assets space in New Zealand friendlier to users.
