Blockchain technology – our legal landscape

New Zealand’s legal framework is gradually adapting to blockchain innovation, but there remains a pressing need for clearer, dedicated legislation and regulatory consistency. Until then, businesses and consumers operate in a landscape shaped by general laws and evolving case law.

As blockchain technology becomes increasingly embedded in New Zealand’s economy, the legal and regulatory frameworks that govern it are evolving. Currently, there is no dedicated legislation addressing blockchain, cryptoassets, or decentralised technologies. Instead, existing laws are being stretched to apply to these emerging innovations.

Key legal precedents and court decisions

One of the most significant legal developments was the Cryptopia liquidation case. The High Court’s ruling affirmed that cryptoassets can be considered “property” under New Zealand law – a foundational clarification that affects asset ownership, insolvency, and fiduciary responsibilities.

This judgment sets a precedent that could shape future cases involving digital assets, particularly in insolvency scenarios where determining the rightful owner of crypto holdings is complex.

Government and regulatory reform – a cautious approach

Government agencies, such as the Reserve Bank of New Zealand (RBNZ) and the Ministry of Business, Innovation and Employment (MBIE), have launched public consultations on the future of money, decentralised finance (DeFi), and central bank digital currencies (CBDCs).

These documents highlight both the opportunities and risks posed by blockchain technologies and show a willingness to engage with industry stakeholders.

However, the pace of regulatory reform is cautious. The Financial Markets Authority (FMA), the regulatory body in charge of monitoring under the Financial Markets Conduct Act 2013 (FMCA), has issued guidance, but its approach remains principles-based, applying existing financial laws to blockchain-based services like token offerings and exchanges.

Challenges for industry participants

A recurring issue for New Zealand-based blockchain businesses is the struggle to access basic banking services. “Debanking”– the practice of financial institutions refusing or withdrawing banking services to crypto-related entities – continues to be a major barrier, particularly for start-ups and exchanges.

These issues not only slow innovation but also risk pushing blockchain enterprises offshore to more supportive jurisdictions.

Consumer protection and market integrity

Recent events, such as the collapse of local crypto exchange Dasset, have raised red flags about consumer protections. Investors affected by such failures often lack recourse, and regulatory oversight remains limited, especially for unlicensed entities operating in the crypto space.

This has spurred calls for more robust safeguards and possibly new legal categories to address the unique risks posed by decentralised technologies.

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Lane Neave is not able to provide legal opinion or advice without specific instructions from you and the completion of all formal engagement processes.