New Zealand’s Financial Markets Authority (FMA) plans to expand its FinTech sandbox to give more firms controlled access to the market. The announcement comes as the regulator engages with industry participants at the FinTech Hui in Wellington this week.

On-Ramp License Under Review

FMA Chief Executive Samantha Barrass said on Thursday that the regulator is developing an “on-ramp” or restricted license that will help innovative firms enter the market under defined conditions. “This new type of license will support firms to get access to the market with some restrictions in place that can be removed as the firm grows,” Barrass said.

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She added that the approach aims to foster competition and innovation while managing potential risks to consumers. The existing sandbox pilot involved six firms, four of which have already identified a path to market for their products.

The latest development signals a more flexible, potentially faster route into the New Zealand market for brokers and trading platforms, but with closer, earlier engagement from the FMA and a clear focus on user protection.

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One outcome of the pilot included the FMA’s decision that Easy Crypto’s non-yielding stablecoin does not qualify as a financial product under the Financial Markets Conduct Act. The program has helped the regulator and participants understand how regulation interacts with emerging technologies.

The FMA also published feedback from its 2025 tokenization discussion paper. Respondents said tokenization could expand capital access and improve liquidity in local markets. However, they also raised concerns about cyber risks, asset custody, and fraud.

Barrass said the FMA will keep working with policymakers to update legal and regulatory frameworks to reflect changes across global markets. The sandbox expansion, she added, signals the regulator’s continuing role in supporting responsible financial innovation.

Tokenisation Findings Published

The regulator has largely featured as an enforcement-heavy regulator, from blacklisting offshore FX and crypto firms to cancelling the licenses of New Zealand brokers that fell short on conduct or governance.

Against that backdrop, the sandbox expansion and on‑ramp license concept show the FMA trying to move beyond being seen only as an enforcer toward a more “grey‑zone” problem solver that gives firms a supervised pathway into the market.

Coupled with is its work on tokenization and crypto‑asset policy. Last year, New Zealand announced plans to shut down all cryptocurrencyATMs and cap international cash transfers at NZ$5,000 as part of a broader push against money laundering and organized financial crime.