New Zealand's Financial Markets Authority (FMA) announced that it has determined the New Zealand dollar stablecoin NZDD does not constitute a financial product and therefore is not subject to regulatory requirements under the Financial Markets Conduct Act. The stablecoin is issued by ECDD Holdings and is backed by a 1:1 New Zealand dollar reserve. The FMA stated that NZDD does not provide interest or returns to holders, and its economic nature is closer to a payment instrument than an investment product. This decision stems from the regulator's fintech sandbox project but applies only to the stablecoin product itself and does not constitute a unified regulatory conclusion for all stablecoins. (FinanceFeeds)

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