Slightly off thread, but this attitude to 'foreign' licences from different agencies is nothing new.
Of course it doesn't affect me now, but during my working life I flew UK registered aircraft under IFR flight plans - and conditions ! - in and out and around New Zealand using my UK ATPL and I/R, but when I came to live here and attempted to convert my UK ATPL to a NZ one, I was told that a UK I/Rtg. was quote "not recognised", so I could only have a PPL.
My UK instrument was acceptable to fly around NZ in a UK registered a/c, so why is it any different if that registration is now NZ ? Just bureaucracy, but as I've said, nothing new.
I have every sympathy with those affected, best of luck chaps.
( P.s. I used to have a saying regarding my working conditions - quote " do it today 'cos tomorrow it will be worse " - sounds like it's still valid ! )