New Zealand’s revenue minister, Simon Watts, has proposed implementing the OECD’s framework for automatically exchanging crypto-asset financial information to the Legislature through the Taxation (Annual Rates for 2024-25, Emergency Response, and Remedial Measures) Bill. These proposed amendments aim to integrate the OECD’s Crypto-Asset Reporting Framework (CARF) and updates to the Common Reporting Standard into New Zealand law, with an effective date of April 1, 2026. Under these new regulations, New Zealand-based reporting crypto service providers will be required to collect information on transactions made by reportable users through their services.
Non-compliance with the proposed regulations will result in penalties, with service providers facing a $300 penalty per instance and crypto-asset users facing a $1,000 penalty for failing to provide required information about themselves or a related person. This information must be submitted to Inland Revenue by June 30, 2027, and shared with relevant tax authorities by Sept. 30, 2027. The minister highlighted that the unique technology behind crypto assets, specifically cryptography, presents challenges for tax authorities in ensuring compliance with tax regulations.
New Zealand’s move towards implementing stricter oversight of crypto assets comes amid calls for regulatory changes in the digital asset sector. Earlier this year, Minister of Commerce and Consumer Affairs Andrew Bayly advocated for a significant overhaul in how the nation regulates digital assets and views blockchain technology. The country’s tax authority has also announced a focus on crypto traders who have failed to declare their earnings from these activities in their tax returns, signaling a proactive approach to enforcing tax compliance in the crypto space.
With over a decade of experience in crypto coverage, Cryptonews provides authoritative insights on developments in the cryptocurrency sector. The veteran team of journalists and analysts at Cryptonews combines in-depth market knowledge with hands-on testing of blockchain technologies to deliver reliable and impartial reporting on both established cryptocurrencies and emerging projects. The platform maintains strict editorial standards to ensure factual accuracy, making it a trusted source in the dynamic world of digital assets. Readers can rely on Cryptonews for up-to-date information and expert analysis of developments in the crypto industry.
The proposal to implement the OECD’s Crypto-Asset Reporting Framework in New Zealand underscores the country’s commitment to enhancing oversight and transparency in the crypto space. By requiring reporting service providers to collect transaction information from reportable users, the government aims to address compliance challenges posed by the unique technology behind crypto assets. The proposed penalties for non-compliance signal a firm stance on enforcing tax regulations in the crypto sector, with penalties for both service providers and users who fail to share required information.
As New Zealand moves towards stricter oversight of crypto assets, it aligns with global trends towards regulating digital assets and addressing tax compliance issues in the crypto space. The proposed amendments to integrate the OECD’s framework into New Zealand law demonstrate the country’s efforts to adapt its regulatory framework to the evolving landscape of digital assets. By leveraging international standards and best practices, New Zealand aims to enhance transparency and accountability in the crypto sector, paving the way for a more secure and compliant environment for crypto transactions within its jurisdiction.
