New Zealand’s revenue minister, Simon Watts, has proposed the implementation of the OECD’s Crypto-Asset Reporting Framework (CARF) through the Taxation Bill. This move aims to integrate the framework and updates to the Common Reporting Standard into New Zealand law, with a scheduled effective date of April 1, 2026. Under this framework, reporting crypto service providers in New Zealand will be required to collect transaction information from reportable users who transact through these providers. Non-compliance by service providers will result in a $300 penalty per instance, while users failing to provide required information will face a $1,000 penalty.
The proposed amendments require providers to submit collected transaction data to Inland Revenue by June 30, 2027, which will then be shared with relevant tax authorities by Sept. 30, 2027. Minister Watts highlighted the unique compliance challenges presented by crypto assets, particularly due to the technology involved such as cryptography. This lack of oversight over crypto-asset income has prompted the need for stricter regulations in the sector. These proposed measures aim to improve oversight and ensure that taxes are properly reported and paid on crypto transactions.
This push towards stricter oversight in New Zealand comes amid growing calls for regulatory changes in the crypto space. 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 focus has shifted towards a more proactive stance, with New Zealand’s tax authority announcing a crackdown on crypto traders who have failed to declare their earnings from digital asset activities in their tax returns. These efforts signal a broader trend towards increased scrutiny and regulation of the crypto industry in New Zealand.
The proposed penalties for non-compliance with the OECD’s framework reflect the government’s determination to ensure proper reporting and taxation of crypto transactions. By imposing fines on service providers and users who do not comply with the requirements, New Zealand aims to enforce accountability in the industry and deter illicit activities. The integration of the Crypto-Asset Reporting Framework into national legislation demonstrates the country’s commitment to aligning with global standards and enhancing transparency in the crypto sector.
As the implementation of the OECD’s framework draws closer, stakeholders in New Zealand’s crypto space will need to prepare for the new reporting requirements. Service providers will have to adapt their processes to collect and submit transaction data, while users must ensure they comply with the information-sharing regulations to avoid penalties. The upcoming changes signal a shift towards a more regulated and transparent crypto environment in New Zealand, reflecting broader trends in global efforts to establish clear guidelines for the digital asset industry. Through these regulatory measures, New Zealand aims to address the challenges posed by crypto assets and enhance oversight in the evolving digital economy.
