Political relations between New Zealand and the Cook Islands have reached a critical juncture amid revelations regarding the Cook Islands government’s plans to combat cryptocurrency identified as “tainted.” Recent leaks have alarmed New Zealand officials, with experts suggesting that these plans may constitute forms of state-sponsored hacking.
Documents obtained by 1News outline the Cook Islands’ consideration of the Cryptocurrency (Ransomware Suppression) Bill 2025. This proposed legislation would grant governmental agents the authority to access and seize cryptocurrency from suspect accounts. This move follows a previous attempt to establish cryptocurrency regulations that was deemed unconstitutional and flawed by Crown Law last year. Prime Minister Mark Brown’s recent discussions surrounding the draft have sparked renewed skepticism regarding its implications.
Critics are particularly concerned about the bill’s provisions, which allow agents to access accounts based on what they deem “reasonable grounds.” Associate Professor Jose Sousa-Santos from Canterbury University warns that such a practice could expose the Cook Islands to increased risks of international crime, given the country’s limited capabilities in handling hacking incidents.
Moreover, cryptocurrency specialists characterize the proposed bill as a gateway to what could be seen as “state-sanctioned hacking.” It includes provisions for bypassing security measures and installing software for ongoing access, raising significant concerns about the potential erosion of New Zealand’s legal standards and national security.
New Zealand’s Foreign Affairs Minister, Winston Peters, emphasized the necessity of continued consultations between the two nations, especially when foreign policy decisions could impact New Zealand’s interests. This latest dispute adds to a series of diplomatic challenges following contentious agreements between the Cook Islands and China, which were signed without New Zealand’s involvement.
Consequently, New Zealand has suspended about NZ$30 million in aid to the Cook Islands in response to the perceived lack of transparency regarding its new international agreements, especially those with China. While the Cook Islands seeks to strengthen its economy through partnerships with emerging powers, this shift raises substantial concerns about the future of its relationship with New Zealand, a longstanding supporter.
As both countries navigate this complex situation, there remains hope that open communication and transparency can lead to stronger collaborations and mutual understanding. Leadership in the Cook Islands is urged to engage actively with both their citizenry and New Zealand to restore trust while pursuing developmental opportunities that uphold the integrity of their enduring alliance.