PANews reported on March 12 that, according to Cointelegraph, the New Zealand Financial Markets Authority (FMA) has ruled that the New Zealand dollar-pegged stablecoin NZDD is not a financial product. The FMA stated that this determination stems directly from its ongoing fintech sandbox pilot program, as the economic substance of NZDD is not a debt security, it is not an investment, and holders do not receive any income, interest, or other benefits.

The law firm representing NZDD issuer ECDD Holdings in the FMA sandbox stated that this determination is an important step towards clarifying stablecoin regulation in New Zealand. However, it should be noted that this determination only applies to specific products and versions of NZDD and does not constitute a general ruling on the regulatory treatment of all stablecoins.