FMA Stablecoin Carve-Out Consultation | LeapRate

New Zealand’s Financial Markets Authority (FMA) opened a consultation on 9 November 2026 on a proposal to take qualifying New Zealand dollar stablecoins outside the financial products regime. The FMA, the country’s financial markets conduct regulator, is considering a class designation, a formal declaration covering a whole category of products, under section 562(1)(c) of the Financial Markets Conduct Act 2013 (FMC Act). The designation would declare those stablecoins not to be financial products, meaning instruments regulated under the Act, for the purposes of the FMC Act.

What a stablecoin would need to qualify

The FMA’s release describes the stablecoins in scope as tokens designed for payments rather than investment, referenced to and backed by New Zealand dollars. If the designation is made, it would apply to stablecoins that are fully backed by funds held on bare trust, a trust in which the trustee holds assets for the beneficiary and has no active duties, at a New Zealand-registered bank. The coins would also have to be redeemable at face value, meaning holders can exchange them for their stated New Zealand dollar value, and pay no return to holders.

Issuers relying on the designation would face ongoing requirements, including public reporting on their reserves.

Who is being asked

The FMA wants views from stablecoin issuers, digital asset businesses, financial institutions, consumers and other stakeholders on whether the approach is appropriate, and on which safeguards and ongoing requirements should apply. Liam Mason, General Counsel at the FMA, said in the regulator’s release:

We want to test whether the way they are regulated should better reflect how they are designed and used, while making sure appropriate safeguards are in place.

Liam Mason, General Counsel, Financial Markets Authority

The FMA says no decisions have been made.

Timeline

Consultation opened on 9 November 2026 and closes at 5pm on Friday 18 December 2026, with a submission form on the FMA’s consultation page.

After the close, the FMA will consider all submissions and finalise its policy proposal. If a designation is made, it will work to put it in place. No date for a decision has been given.

Source: FMA consultation page