New Zealand’s Financial Markets Authority published a 15-page report Wednesday evaluating its fintech regulatory sandbox pilot, revealing significant challenges despite initial ambitions. Of 24 firms expressing interest when the pilot launched in December 2024, only six gained admission to the cohort. Just one company—ECDD Holdings, the Easy Crypto subsidiary behind the NZDD stablecoin—reached market during the 17-month period.
ECDD received New Zealand’s first sandbox exemption and license in December 2025, followed by regulatory designation that NZDD is not a financial product in March. Within ten days, parent company Swyftx reportedly began shopping the stablecoin business, then shut Easy Crypto’s New Zealand exchange on March 31. The remaining five participants are still navigating the regulatory process.
FMA Chief Executive Samantha Barrass acknowledged participants faced “frustration with uncertainty, cost, and the steep transition to full licensing.” The regulator is now developing an “on-ramp” license to create more proportionate market pathways, alongside workstreams covering virtual assets and payments.
FXnCO Insight
New Zealand’s regulatory sandbox struggles signal potential delays for fintech innovation approvals while regional competitors in Hong Kong, Singapore and Australia advance their digital asset frameworks.
Source: Finance Magnates