Assets, Bitcoin

Is Bitcoin Legal in NZ?

Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain.

Bitcoin is unique in that there are a finite number of them: 21 million.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.

NOTE: WARNING: Bitcoin is not a legally recognized currency in New Zealand and its status as legal tender is uncertain. It is not regulated by any government or central bank. Trading, buying and selling Bitcoin is done at your own risk and individuals should be aware of the potential risks involved with investing in Bitcoin.

As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.

Bitcoin is legal in New Zealand as of April 2017. The country’s Financial Markets Authority (FMA) has officially recognized cryptocurrency exchanges as businesses.

This means that they are now subject to the same AML/CFT requirements as other financial institutions in the country.

The FMA’s decision is in line with recent actions taken by other financial regulators around the world. It also underscores the fact that Bitcoin is gaining legitimacy as a mainstream financial tool.

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