The New Zealand Financial Markets Authority (FMA) asserted that Cryptocurrencies or initial coins of the offer of coins (ICO) will be considered as security in the country. The decision has been detailed in the new guidelines on ICOs and virtual currencies published by the agency.
In its statement issued at the end of October 2017, the FMA asserted that any digital currency or ICO token obtained would be considered security. The finance regulator also explained the different ways in which symbolic sales will be covered by the country's national law.
"All tokens or cryptocurrencies are titles under [Financial Markets Conduct Act 2013] – even those that are not financial products A security is an arrangement or facility that has or is believed to have been in existence. effect of a person making an investment or managing a financial risk. "
Highlights of the FMA Guideline
According to its guidelines, the FMA stated that ICO tokens could be considered one of four categories of financial products, namely, debt securities, managed investment products, equity securities and derivatives. The agency also explained that tokens would be classified according to their characteristics.
"Where appropriate, we can designate any security as a particular financial product based on its economic substance. token giving investors voting rights and a share in the company and its profits could be designated as an equity security.
The FMA guidelines included guidelines on how to treat companies involved in new technology.
The agency claimed that all major companies offering virtual currency services such as portfolios, brokers and stock exchanges should be duly registered with relevant government agencies and flexibility. "
" We may grant exemptions to further the objectives of the FMC Act. One of the objectives is to promote innovation and flexibility in our financial markets, and we can, where appropriate, grant exemptions to ensure that the requirements of the Securities Act are met. FMC be adapted to the needs of IFAs. "