Cryptocurrency Regulations and Laws in New Zealand
Learn about New Zealand’s crypto regulations. Crypto is legal, treated as property, and taxed as income. Exchanges are regulated under existing financial and AML laws. IRD enforces crypto compliance without a standalone capital gains tax.
New Zealand offers a pragmatic and well-defined approach to cryptocurrency, treating digital assets as property and regulating their use under existing financial, tax, and anti-money laundering frameworks. While the country does not yet have specific crypto legislation, it applies robust oversight using general laws and continues to evolve its stance in line with international standards.
Summary
Crypto is legal in New Zealand and treated as property rather than legal tender. While there’s no specific crypto law, platforms and projects must comply with general financial, tax, and AML regulations. The government and tax authority are increasing transparency and enforcement measures.
Legal Status
- General Use: Legal
- Trading: Legal; regulated under fair conduct rules
- Exchanges & Custody: Must be registered under the Financial Service Providers Act or regulated offers via the Financial Markets Conduct Act, and subject to AML oversight by the Department of Internal Affairs and FMA
- Mining: Legal and unregulated
- ICOs & Tokens: Allowed; may qualify as financial products depending on structure
- NFTs: Legal; treated as property with tax implications
Taxation
Crypto is taxed under normal income tax rules (NZ has no standalone capital gains tax), meaning all gains or crypto income are taxed at personal rates (10.5‑39%).
- Income Tax on Crypto Gains: Yes
- Capital Gains Tax: Not separate—gains taxed as income
- Mining, NFTs, Staking, DeFi: Taxable if profit-making
- Reporting Requirements: Mandatory—IRD actively enforces and exchanges are required to report
Regulatory Bodies
- Financial Markets Authority (FMA): Enforces fair conduct and licensing of crypto offers
- Department of Internal Affairs: Administers AML/CFT laws
- Inland Revenue Department (IRD): Tax enforcement and guidance on crypto assets
Key Regulations & Laws
- Financial Service Providers Act 2008 & FMCA 2013: Governs exchanges, ICOs, and fair dealing standards
- AML/CFT Act 2009: Applies to crypto platforms as reporting entities
- IRD Crypto Asset Guidance (2018+): Declared crypto as property for tax
Timeline of Regulatory Milestones
| Year | Event | Description |
|---|---|---|
| 2018 | IRD crypto guidance | Officially treats crypto as taxable property |
| 2020 | FMCA/FSPA frameworks used | Applying existing laws to exchanges and tokens |
| 2024 | CARF alignment | Preparing to implement OECD’s Crypto‑Asset Reporting Framework |
| 2025 | Active tax enforcement | IRD and FMA intensify compliance actions |
Resources
- [FMA – Crypto guidance]
- [Inland Revenue – Cryptoassets]
- [Department of Internal Affairs – AML/CFT]
Notes
- Travel Tip: Crypto ownership, trading, and investment are legal, but acceptance as payment is rare.
- Local Trends: Around 6–10% of Kiwis own crypto, mostly via offshore exchanges.
- Language Notes: All official info is in English.