MNI BRIEF: Crypto Assets May Need More Regulation - RBNZ

Crypto assets may need more regulatory oversight given potentially "significant" risks to consumers, Reserve Bank of New Zealand Assistant Governor Karen Silk said in a speech Wednesday. She said "gaps" exist in the regulatory tool kit to address these risks, adding that technology-driven innovation in new forms of money needed to reinforce trust in money and ensure they didn't undermine New Zealand's "monetary sovereignty."

"The time is right for us to ask what, if any, additional regulatory powers are needed to appropriately balance the risks and opportunities, and to provide regulatory certainty in support of beneficial innovation," Silk said. The RBNZ would publish an issues paper on private innovations in money early next month and would seek feedback by March 2023, she added. Silk said the Bank had embarked on the second stage of exploring a Central Bank Digital Currency (CBDC).

Silk's comments came after an overnight sell-off in Bitcoin, which fell to a low of USD17,172 as Binance offered to acquire rival exchange FTX. (See Equities : Sharp Downtick for Major Indices Amid Crypto Rout, USD Stabilises)