Head of Auckland University’s Commercial Law Department, Associate Professor Alex Sims, has urged the New Zealand government to legitimate bitcoin and other cryptocurrencies through developing a permissive regulatory apparatus. Sims argued that legitimating cryptocurrencies is imperative in order for the government to lay the groundwork required in order to facilitate the application of blockchain technology in a range of economic sectors. “The technological advances are compelling, which is extraordinary from something that only came up under 10 years ago,” Sims told Interest.co.nz.
Sims argues that New Zealand has “dropped the ball” with regards to cryptocurrency regulations, and that the NZ government should follow the example set by neighboring Australia. “You can use digital currencies – there is no law against it. But in practice, businesses aren’t able to accept digital currencies, because if they do, they get their bank accounts closed down… We’re behind, but we can catch up. We can follow what Australia is doing. And some government departments in New Zealand are looking very… closely at what Australia is doing.”
Last week, Australia’s Justice Minister revealed plans to amend its Anti-Money Laundering and Counter-Terrorism Financing Act to bring cryptocurrency exchange providers under the purview of its financial authorities, following the repealing of Australia’s double-taxation on bitcoin, and subsequent legalization of bitcoin as a means of payment.