New Zealand is on the brink of significant changes in cryptocurrency taxation with a new bill proposed by the Minister of Revenue, Simon Watts. This bill, titled Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures), aims to align with the OECD’s Crypto-Asset Reporting Framework (CARF) and make major updates to the Common Reporting Standard. If passed, it will transform how crypto transactions are reported and taxed in the country.
From April 1, 2026, crypto exchanges and service providers in New Zealand will need to adhere to stringent reporting requirements. They’ll be required to disclose detailed personal information of their users—including names, addresses, and tax identification numbers—to the Inland Revenue (IR). Additionally, exchanges will need to provide comprehensive data on users’ digital asset transactions, crypto-to-fiat exchanges, and transfers to wallet addresses. The goal? To ensure accurate tax reporting and compliance.
The new regulations will also enforce penalties for non-compliance, which could reach up to NZD 10,000 (USD 6,231) per year for service providers, while individual users might face fines of up to NZD 1,000 (USD 621) if they fail to comply with reporting rules.
The bill reflects a growing global trend where countries are tightening their grip on crypto transactions to prevent tax evasion and ensure that digital assets are treated with the same scrutiny as traditional investments. This move is expected to have a substantial impact on New Zealand’s crypto ecosystem, potentially setting a precedent for other countries to follow.
While this development may bring some challenges, it also highlights a broader shift towards greater transparency and regulation in the cryptocurrency space. Traders and investors should be aware of these changes as they could affect how their transactions are reported and taxed in the near future.
