FMA Expands FinTech Sandbox for Wider Support
Summary
The Financial Markets Authority (FMA) in New Zealand is expanding its FinTech sandbox pilot to offer an on-ramp or restricted licence for innovative firms. This initiative aims to support FinTech innovation and competition while managing consumer risks, building on insights from the current pilot.
What changed
The Financial Markets Authority (FMA) of New Zealand has announced the expansion of its FinTech sandbox pilot, aiming to introduce an on-ramp or restricted licence. This initiative is designed to support innovative FinTech firms by providing a pathway to market with initial restrictions that can be phased out as the firm grows. The expansion follows a successful pilot where six firms participated, with four identifying a path to market, and includes a specific declaration that Easy Crypto's non-yielding stablecoin is not a financial product under the FMC Act. The FMA is also publishing responses to its September 2025 Tokenisation discussion paper, acknowledging both the benefits and risks identified by submitters.
This development signals a proactive approach by the FMA to foster innovation within the financial sector while balancing consumer protection. Regulated entities, particularly FinTech startups and those involved in tokenisation, should monitor the FMA's progress on the on-ramp licensing framework and any subsequent policy changes related to tokenised assets. While no specific compliance deadline is mentioned for the expanded sandbox, firms interested in leveraging this pathway should prepare for potential new application processes and regulatory requirements. The FMA's engagement with policymakers on legal and regulatory frameworks suggests potential future changes in the crypto and tokenisation space.
What to do next
- Monitor FMA announcements regarding the implementation of the on-ramp/restricted licence for FinTech firms.
- Review FMA's Tokenisation discussion paper responses for insights into potential future regulatory changes.
- Assess current business models for alignment with potential new licensing pathways or regulatory frameworks for tokenised assets.
Source document (simplified)
Back 12 March 2026
FMA expands sandbox to offer wider support for FinTech firms
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MR No. 2026 – 08
The Financial Markets Authority – Te Mana Tātai Hokohoko (FMA) will use this week’s FinTech Hui in Wellington to engage on the next steps for its FinTech sandbox pilot.
The FMA is aiming to expand the sandbox pilot to introduce an on-ramp or restricted licence for innovative firms.
“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,” Chief Executive Samantha Barrass says.
“This approach means the FMA can help innovation and grow competition while balancing potential risks to consumers.”
Six firms entered the current FMA sandbox pilot which aimed to remove unnecessary regulatory barriers and encourage innovation. Four firms have identified a pathway to market for their innovative products or services, where regulatory uncertainty and other barriers to entry may otherwise have prevented launch.
As part of the sandbox pilot, the FMA has declared Easy Crypto’s non-yielding stablecoin is not a financial product under the Financial Markets Conduct Act (FMC Act).
The pilot has given both FMA and participants greater insights into the benefits and risks of financial innovation and new technologies, to identify gaps in our existing regulation, and provide real-world insights to policymakers.
“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.” Ms Barrass said.
Tokenisation
The FMA is also publishing the responses to its September 2025 Tokenisation discussion paper.
Submitters outlined benefits that included broadening capital raising opportunities, greater access to New Zealand financial markets and increasing liquidity and market resilience.
Risks identified included custody risks around control of virtual assets, cyber security and increased risk of fraud and scams involving fake tokenised assets.
Submitters also raised concerns around legal and regulatory uncertainty, including that overseas jurisdictions are moving to licensing regimes for crypto service providers.
“The FMA 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.” says Ms Barrass.
ENDS
Media contact:
If you would like to talk with one or more of the firms who participated in the Sandbox pilot or would like an interview, please contact [email protected]
Related
Financial Markets Conduct (ECDD Holdings Limited Stablecoin) Designation Notice 2026
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