New Zealand’s finance regulator has released new guidance on initial coin offerings (ICOs) and cryptocurrencies.
In a statement published last week, the New Zealand Financial Markets Authority (FMA) outlined the ways in which token sales would be covered under national law. Notably, the regulator said that, in its view, any cryptocurrency or ICO-derived token would be considered a security.
The FMA said:
“All tokens or cryptocurrencies are securities under the [Financial Markets Conduct Act 2013] – even those that are not financial products. A security is any arrangement or facility that has, or is intended to have, the effect of a person making an investment or managing a financial risk.”
Citing that law, the agency went on to say that tokens could fall into one of four financial product categories – debt securities, equity securities, managed investment products or derivatives – depending on their characteristics…