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New Zealand to Adopt OECD Framework for Crypto Oversight

New Zealand to Adopt OECD Framework for Crypto Oversight

CoineditionCoinedition2024/08/26 16:00
By:Coin Edition
  • Stricter crypto reporting laws proposed in New Zealand, effective April 2026.
  • Penalties introduced for non-compliance in crypto transactions reporting.
  • OECD’s CARF framework to enhance transparency in NZ’s crypto-asset income tracking.

New Zealand’s government is exploring a new way to regulate cryptocurrency transactions. On Monday, Revenue Minister Simon Watts suggested adopting the Organization for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework ( CARF ) into the country’s laws.

This proposal, included in the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Bill, aims to improve the country’s ability to track crypto-asset income. Due to the unique nature of cryptocurrencies, tax authorities have struggled to monitor this sector.

The proposed amendments would go into effect on April 1, 2026. From this date, all New Zealand-based crypto service providers would be required to collect specific information on crypto transactions. This requirement would encompass transactions made by users through these service providers.

The collected data would then be submitted to Inland Revenue by June 30, 2027. Afterward, Inland Revenue is expected to share the gathered information with relevant international tax authorities by September 30, 2027.

The report indicates the goal is to establish a more transparent and accountable system for tracking crypto-asset income, which has been challenging to monitor under current regulations.

In addition, the proposed framework imposes penalties on both service providers and users for not complying with the reporting requirements. Service providers could face a fine of $300 for each violation. Meanwhile, users who fail to provide required information about themselves or other related parties may be fined up to $1,000.

These penalties demonstrate the government’s commitment to enforcing the new regulations and ensuring that all participants in the crypto market meet the reporting standards.

Minister Simon Watts highlighted that the technology underlying cryptocurrencies, particularly cryptography, poses unique challenges for tax authorities. Unlike traditional income sources, crypto-asset income is harder to oversee, leading to tax compliance gaps. 

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.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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