New Zealand's Financial Markets Authority (FMA) has opened a consultation on a proposal to exempt qualifying New Zealand dollar-backed stablecoins from the financial product rules in the Financial Markets Conduct Act (FMC Act). The consultation opened on November 9, 2026.
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 would qualify; a stablecoin must meet 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 redemption: holders must be able to redeem their tokens at face value, on a 1:1 basis.
Stablecoins that meet both conditions would be exempt from being classified as a financial product under the FMC Act. FMA leadership has stressed that stablecoins are primarily payment instruments, not investments.
The regulator is gathering input from a wide range of voices. Stablecoin issuers, financial institutions, digital asset businesses and consumers are all invited to weigh in.
How New Zealand got here
The FMA has already taken a position on this question once before. In March 2026, the regulator issued a designation confirming that NZDD stablecoins are not treated as financial products. That designation settled one specific case. The new consultation would turn a single ruling into a repeatable route that other qualifying issuers could follow.
The FMA has framed the initiative as an interim measure, designed to operate until comprehensive digital asset regulation is introduced.
What this means for issuers, users and other regulators
For stablecoin issuers, the biggest benefit is clarity. Rather than wondering how the regulator might classify their token, they would have a defined set of criteria to meet.
That clarity comes with strings attached. The requirement that reserves be held as NZD at registered banks points issuers toward a conservative, bank-anchored model of backing. Issuers who want to pursue other reserve strategies would not fit the pathway as proposed.
For consumers, the headline protection is redemption at face value. If a stablecoin is supposed to be as good as a dollar, the ability to turn it back into exactly one dollar is the test that counts.
