New Zealand Rules NZDD Stablecoin Not a Financial Product

New Zealand's Financial Markets Authority (FMA) has determined that the local currency-tied stablecoin, NZDD, does not qualify as a financial product. This decision stems from a financial technology sandbox pilot, concluding that the stablecoin's economic substance is not that of a debt security because it offers no income or interest to holders. Law firm MinterEllisonRuddWatts, which represented the issuer ECDD Holdings, hailed this as a crucial step toward regulatory clarity for stablecoins, though they cautioned the designation is specific to the NZDD version described and not a general ruling for all stablecoins. Furthermore, the FMA plans to introduce a restricted license for FinTech firms within its sandbox pilot to support market access for growing companies.

(Source：Cointelegraph)