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Kiwi Attack: Tokens Named Securities in New Zealand

What happened

The New Zealand Financial Markets Authority (FMA) issued a new ICO guide, where claims that any cryptocurrencies or tokens are considered as a security.

Come again?

Unlike, say, the U.S. regulators, which define only some tokens as securities, New Zealand authorities decided not to dig deep. “All tokens or cryptocurrencies are securities under the [Financial Markets Conduct Act 2013] – even those that are not financial products.” Bite that!

So how will crypto market work in there?

According to FMA, all companies offering digital currency services like wallets, brokers and exchanges should be properly registered. All ICO tokens will be classified into 4 categories – debt securities, managed investment products, equity securities and derivatives.

What can we learn from that

  • Well, at least, Kiwis did not ban ICOs – and they could, considering nearby Asian counterparts.
  • Registering all tokens as securities is yet another model of crypto regulation – but somehow, it diminishes the industry spirit, as it makes companies fully dependent on authorities.
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