New Zealand’s Financial Markets Authority (FMA) plans to
expand its FinTech sandbox to give more firms controlled access to the market.
The announcement comes as the regulator engages with industry participants at
the FinTech Hui in Wellington this week.

On-Ramp License Under Review

FMA Chief Executive Samantha Barrass said on Thursday that the regulator is
developing an “on-ramp” or restricted license that will help innovative firms
enter the market under defined conditions. “This new type of license will support firms to get access to
the market with some restrictions in place that can be removed as the firm
grows,” Barrass said.

She added that the approach aims to foster competition and
innovation while managing potential risks to consumers. The existing sandbox
pilot involved six firms, four of which have already identified a path to
market for their products.

The latest development signals a more flexible, potentially
faster route into the New Zealand market for brokers and trading platforms, but
with closer, earlier engagement from the FMA and a clear focus on user
protection.

Read more: New Zealand to Ban Crypto ATMs to Curb Money Laundering

One outcome of the pilot included the FMA’s decision that
Easy Crypto’s non-yielding stablecoin does not qualify as a financial product
under the Financial Markets Conduct Act. The program has helped the regulator
and participants understand how regulation interacts with emerging
technologies.

The FMA also published feedback from its 2025 tokenization
discussion paper. Respondents said tokenization could expand capital access and
improve liquidity in local markets. However, they also raised concerns about
cyber risks, asset custody, and fraud.

Barrass said the FMA will keep working with policymakers to
update legal and regulatory frameworks to reflect changes across global
markets. The sandbox expansion, she added, signals the regulator’s continuing
role in supporting responsible financial innovation.

Tokenisation Findings Published

The regulator has largely featured as an enforcement-heavy
regulator, from blacklisting offshore FX and crypto firms to cancelling the
licenses of New Zealand brokers that fell short on conduct or governance.

Against that backdrop, the sandbox expansion and on‑ramp
license concept show the FMA trying to move beyond being seen only as an
enforcer toward a more “grey‑zone” problem solver that gives firms a supervised pathway into the
market.

Coupled with is its work on tokenization and crypto‑asset
policy. Last year, New Zealand announced plans to shut down all cryptocurrencyATMs and cap international cash transfers at NZ$5,000 as part of a broader push
against money laundering and organized financial crime.

This article was written by Jared Kirui at www.financemagnates.com.

—

— CONTENT NOT MODERATED BY G6

— Please be careful with this content. If you don’t think it should be here, please get in touch with us at [email protected]