The strained political ties between New Zealand and the Cook Islands have reached a new critical point, spurred by recent leaks revealing the Cook Islands government’s intentions to pursue aggressive measures against cryptocurrency deemed “tainted.” These revelations have raised alarms within the New Zealand government, with experts categorizing the plans as potentially constituting state-sponsored hacking.
Confidential documents disclosed to 1News indicate that the Cook Islands is considering the introduction of the Cryptocurrency (Ransomware Suppression) Bill 2025, which would empower agents to access and seize cryptocurrency from suspected accounts. This follows last year’s failed attempt at drafting cryptocurrency legislation, which was dismissed after being deemed unconstitutional and flawed by Crown Law. Prime Minister Mark Brown was recently engaged in discussions over this draft legislation, which has prompted renewed skepticism.
Critics have voiced concerns about the bill’s provisions that could lead to unauthorized access into accounts based solely on what agents consider “reasonable grounds.” Notable experts, including Associate Professor Jose Sousa-Santos from Canterbury University, warn that this approach could dangerously expose the Cook Islands to international crime, given its limited capacity to manage such hacking activities.
Furthermore, the bill has been characterized by cryptocurrency specialists as enabling agents to undertake what could be considered “state-sanctioned hacking,” with provisions that allow bypassing security mechanisms and installing software for future access—an alarming proposition that could undermine New Zealand’s legal framework and security.
New Zealand’s Foreign Affairs Minister Winston Peters reiterated the importance of consultation between the two nations, especially concerning foreign policy decisions that could affect the realm country. This latest conflict adds to a series of diplomatic tensions, including recent contentious agreements between the Cook Islands and China that have been signed without New Zealand’s consultation.
In light of these developments, New Zealand has suspended approximately NZ$30 million in aid to the Cook Islands as a direct response to the lack of transparency regarding its new international agreements, particularly those involving China. The Cook Islands has been pursuing partnerships with emerging powers in an effort to bolster its economy, yet this has prompted significant concern regarding the implications for its longstanding relationship with New Zealand, which provides critical support.
As both nations navigate these turbulent waters, there is hope that fostering open communication and transparency will pave the way for stronger partnerships and collaborative solutions. The Cook Islands’ leaders are encouraged to engage with their citizens and with New Zealand to rebuild trust while exploring new opportunities for development that preserve the integrity of their longstanding alliance.