New on‑ramp licences aim to open door for innovative firms
New Zealand’s Financial Markets Authority (FMA) is set to widen its fintech sandbox, opening the door for more innovative firms to test and launch products under a new “on‑ramp” or restricted licence.
FMA chief executive Samantha Barrass (pictured) said the move reflects the pace of change in financial services.
“Our financial system is changing faster than ever before. This new type of licence will support firms to get access to the market with some restrictions in place that can be removed as the firm grows,” Barras said.
She added that “this approach means the FMA can help innovation and grow competition while balancing potential risks to consumers.”
The current sandbox pilot has worked with six firms to remove unnecessary regulatory barriers and encourage innovation. Four of those businesses have now identified a viable path to market for their products or services, including a decision that Easy Crypto’s non‑yielding stablecoin is not a financial product under the Financial Markets Conduct Act.
Broader sandbox support for more fintechs
FMA, part of the Global Financial Innovation Network, says the pilot has given both regulators and participants practical insights into the benefits and risks of new technologies, and highlighted gaps in existing regulation.
“FMA staff worked closely with the six firms in the well‑received pilot to enable a pathway to market. Expanding the sandbox to focus on on-ramp licensing means we can broaden the support we offer to a wider number of firms,” Barrass said.
For mortgage advisers, that could mean faster access to regulated fintech partners offering automated fact‑finds, digital signatures, income and expense verification, or tokenised investment products that sit alongside traditional mortgages for wealth and property investor clients.
Tokenisation benefits and risks under review
Alongside the sandbox expansion, FMA has released feedback on its September tokenisation discussion paper. Submitters pointed to potential benefits including broader capital‑raising options, greater access to New Zealand markets and improved liquidity and resilience, but also warned of custody risks, cyber security threats, and the risk of scams involving fake tokenised assets.
Barrass said the regulator “will continue to engage with policymakers on potential changes to legal and regulatory frameworks to reflect the significant changes in markets over the past decade,” signalling that further rule changes around crypto and tokenised assets are likely.
View the full media release on the FMA website
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