New Zealand lawmakers and regulators have not imposed strict guidelines for crypto firms to operate in the country, nor have they allowed Kiwis to freely use cryptocurrencies.
Binance, a global cryptocurrency exchange, has registered with New Zealand’s Ministry of Business, Innovation, and Employment and established local offices there.
Binance announced on September 29 that it had been registered as a financial service provider in New Zealand, giving residents access to services such as spot trading, nonfungible tokens, and staking. The move to the crypto-friendly Pacific nation came after regulators in Dubai, Abu Dhabi, Kazakhstan, and Italy gave Binance permission to open an offshoot.
“New Zealand is an exciting market with a strong history of fintech innovation,” said Changpeng Zhao, CEO of Binance.
New Zealand lawmakers and regulators have not imposed strict guidelines for crypto firms to operate in the country, nor have they allowed Kiwis to freely use cryptocurrencies. In 2019, the country’s tax authority declared that cryptocurrency income was legal, and the Reserve Bank of New Zealand has been researching the potential benefits and risks of a central bank digital currency.
Huobi Global was registered as a registered financial service provider in New Zealand in June, but it later suspended its derivatives trading services for residents, citing compliance with local regulations. New Zealand, with a population of about 5.1 million people, is a smaller market than its neighbor Australia, where an estimated 4.2 million people own cryptocurrency.
Related: Australian banks ANZ and NAB will not ‘endorse’ retail cryptocurrency speculation.
Despite expanding to many countries around the world, Binance remained a target for some regulators. Binance Holdings was fined $3.3 million by the Dutch central bank in July for providing cryptocurrency services without being registered. On September 22, the company also established the Global Advisory Board, which will address regulatory issues related to crypto, blockchain, and Web3 adoption.
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