New Zealand regulators have ruled that the stablecoin NZDD is not a financial product.

CoinFeed reported on March 12th, citing Cointelegraph, that 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 NZDD's economic substance is not a debt security, it is not an investment, and holders do not receive any income, interest, or other returns. The law firm representing NZDD issuer ECDD Holdings in the FMA sandbox stated that this determination is an important step towards clarifying New Zealand's stablecoin regulation, but it should be noted that this determination only applies to a specific product and version of NZDD and does not constitute a general ruling on the regulatory treatment of all stablecoins.