New Zealand cryptocurrency exchange Cryptopia is set to offer its New Zealand Dollar Token (NZDT) to customers once more from early 2019, according to the country’s News Room publication.
The NZDT token is the country’s first digital token to be anchored to the New Zealand dollar (much like other stable coins for USD). NZDT previously allowed people to deposit NZ dollars into a Cryptopia-held bank account via the New Zealand banking system, after which Cryptopia would issue users a commensurate amount of NZDT ‘digital dollars’ that could be traded against a basket of digital currencies listed by the exchange. NZDT tokens could be withdrawn by following the reverse process.
NZDT proved fairly popular in the small oceanic country where there are few viable fiat gateway alternatives. That was until Cryptopia’s previous banking partner, ASB, notified the exchange that they would no longer provide them banking support back in January.
While Cryptopia has said it has found a smaller bank that will support its operation, the largest New Zealand banks all appear to be taking a more cautious approach to supporting cryptocurrency exchanges. Should New Zealand regulatory bodies find any bank to breach Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) stipulations — in lieu of more clear crypto regulatory certainty — larger banks have much more to lose should compliance breaches place their banking license at risk.