EddieJayonCrypto
27 Aug 24
New Zealand is considering stricter reporting laws for cryptocurrency transactions, with proposed penalties for non-compliance. The government aims to enhance transparency in tracking crypto-asset income by adopting the OECD's Crypto-Asset Reporting Framework. If approved, the amendments would take ...
New Zealand is set to implement stricter reporting laws for cryptocurrency transactions, with penalties for non-compliance, effective April 2026. The government plans to enhance transparency by adopting the OECD's Crypto-Asset Reporting Framework, requiring crypto service providers to submit specific transaction information to the Inland Revenue by June 30, 2027. Penalties for non-compliance will apply to both service providers and users, signaling a commitment to enforcing the regulations and aligning with international standards.
In a move to address the challenges of monitoring crypto-asset income, New Zealand is considering adopting the OECD's Crypto-Asset Reporting Framework into its laws. This proposal aims to improve the country's ability to track crypto-asset income, addressing the unique nature of cryptocurrencies that has posed challenges for tax authorities. The amendments would require all New Zealand-based crypto service providers to collect transaction information from users and submit it to the Inland Revenue by June 30, 2027. Penalties for non-compliance will be imposed on both service providers and users to ensure reporting standards are met.
Minister Simon Watts emphasized the unique challenges posed by cryptocurrency technology, particularly cryptography, for tax authorities. The proposed adoption of the OECD's CARF is a step toward bridging these gaps and aligning New Zealand's regulatory framework with international standards, aiming to establish a more transparent and accountable system for tracking crypto-asset income.