In part 2, Jeremy explores what businesses might want to consider if they're looking at interacting with those digital assets, including any legal and regulatory regimes that might apply.
[00:59] Jeremy begins with the starting point for most coins or tokens, which is the FMCA (Financial Markets Conduct Act). He discusses whether digital assets are likely to be financial products, including whether they will fall within the separate financial advice products definition, and considers the nuances of NFTs [07:48].
[09:00] He also considers the treatment of digital assets as possible financial services, including looking at the financial services provider regime. He explains how this may tie in with AML/CFT requirements [10:32] and the fair dealing requirements under the FMCA, and talks about how even if dealing in digital assets isn’t a financial service, you could still be covered by the requirements of the FTA (Fair Trading Act) and the CGA (Consumer Guarantees Act). In either case, he looks at how to be proactive in disclosing risk [11:37].
[14:27] Jeremy gives information about industry bodies that can assist, such as FinTechNZ, Blockchain NZ and the NZ Tech Alliance, as well as Callaghan Innovation, and government regulators such as FMA, DIA, the Reserve Bank and the Commerce Commission.
[18:26] Finally, he talks about what regulation may emerge in New Zealand in the future, and what discussions are being had in this area.
We note that since the recording of this episode, the Finance and Expenditure Select Committee that Jeremy mentions [18:31] has published its final report on its inquiry into the current and future nature, impact and risks of cryptocurrencies. Please see here for further information on this report.
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