New Zealand Crypto: FMA Regulation & Tax #64

Country facts

New Zealand crypto score

Trade and store crypto

FMA oversight, income tax on crypto, and IRD reporting requirements

New Zealand still takes a ‘same rules, new tech’ approach. Crypto is allowed, VASPs now sit clearly inside the AML/CFT regime (June 1, 2024 rules), and the Reserve Bank is consulting on a retail ‘digital cash’ CBDC but hasn’t committed to issuing it. The country moved up on the coincub rankings during 2022 based on the positive stance of its financial institutions and a strong and growing blockchain community. CCrypto itself isn’t a separate licensed product, but since 2024 anyone exchanging, safekeeping or transferring virtual assets is a reporting entity under the AML/CFT Act, with travel-rule style obligations from 2025.

New Zealand is not a hub of crypto dynamism and any trading seems to be more about investing than spending or using to transact purchases. Regulation is light – apart from taxes – and there is no real ambition to create a crypto hub in evidence.

Crypto trading laws in New Zealand

Crypto trading in New Zealand relies on guidance provided by the Financial Markets Authority (FMA) which, broadly speaking, views the activity in the same way as it views traditional financial services. For example, cryptocurrency exchanges are subject to New Zealand’s Anti-Money Laundering and Countering Financing of Terrorism Act, which was updated in 2024 to name VASPs specifically and to pull virtual-asset transfers into prescribed-transaction reporting.

If you want to trade bitcoin, there are a number of well-established crypto exchanges to choose from that make it easy and straightforward to buy, sell and invest in bitcoin (BTC) and other cryptocurrencies.

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Legal – forthcoming crypto legislation

Bitcoin investing or trading is legal in New Zealand. However, the activity is not heavily regulated and legislation related to cryptocurrencies is always evolving.

The FMA also opened 2025 consultations on tokenisation in financial markets, so we should expect more guidance but not a full ‘MiCA-style’ licensing regime yet.

Income tax on Bitcoin New Zealand

As with the UK and many other countries, there are no taxes on buying or holding cryptocurrencies in New Zealand. NZ treats digital assets such as bitcoin as a form of property, rather than currency, for tax purposes.

More encouragingly, if you plan to trade, New Zealand does not have a broad capital gains regime, which means that, generally, crypto assets will be taxable only when you buy, trade, or sell them for the purpose of gain. In this case, any gain or loss you make needs to be recorded and declared. If you decide to trade more advanced crypto products, often the realm of the experienced investor, the tax you need to consider depends on the specific type of crypto product you are buying, so you may need specialist advice.

You’ll have some form of tax allowable expenses should you go in for mining bitcoin. On the question of losses through theft or negligence, there is a chance that you will be able to claim a loss if your crypto assets are stolen but only if they were eligible for tax when they were stolen. You’ll also need to show that they really have been stolen – not just mislaid or lost – and that they were trading stock. In these cases you can claim the loss in the year they were stolen – but as always keep records and details. Any reputable exchange should be able to help with these. As with any income, your bitcoin will come under the tax laws of the country you become a legal resident. If you set up a business to trade bitcoin, that business will come under the tax laws of the country it operates from.

Bitcoin mining in New Zealand

Mining is highly technical and beyond the scope of most individuals, but it falls within standard New Zealand income tax laws.  Cryptocurrency mining is considered to be an activity aimed at making a profit and tax is payable on gains you make from it. The expenses are huge in time and energy, so these are allowable against gains.

Crypto financial services in New Zealand

Fin services – retirement planning

Digital assets can be used as part of your retirement fund in New Zealand and there are financial fund management bodies that are able to advise and help with your investment. The message from the establishment is just don’t get carried away.

Fin services – banking

Banks as yet do not offer custody services to facilitate the buying and selling of crypto – such services are growing amongst other countries, but are by no means widespread. There is increasing interest in crypto investing from consumers which may lead to banks offering such services in the future.

Fin Services – Defi

Cryptocurrencies are not legal tender in New Zealand, but cryptocurrency exchanges, brokers, wallet providers, and businesses offering ICOs and investment opportunities are regulated in New Zealand because they are treated as financial services by New Zealand’s Financial Markets Authority (FMA). Whilst there is interest from institutions in blockchain technology the adoption of Defi is a long way off.

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Using crypto in New Zealand

Spending Bitcoin in New Zealand

In addition to the locally available worldwide brands that accept crypto, such as Microsoft, Starbucks, etc., New Zealand has a growing and a diverse number of services you can spend your Bitcoin on. In most cases, it is possible to buy vouchers with your currency that may then be indirectly used with participating outlets.

Gifting crypto in New Zealand

Unfortunately, you can’t avoid being eligible for tax on your crypto by gifting it to someone, but you can make tax-efficient gifts to a recognized charity. Making it a gift is considered disposal, at market value, for tax purposes and you’ll have to record the exit of your cryptocurrency at market value on the date it was gifted.

Crypto Exchanges

Top crypto exchanges in New Zealand

NAME			RATING	FOUNDED DATE	DEPOSIT METHOD	BASED IN	REVIEW	SIGN UP
#1		Independent Reserve	3.82	2013	EFT bank transfers SWIFT transfers crypto Osko/PayID Credit/Debit cards and PayPal	Australia	Coincub Review	Register Now

#1 Independent Reserve 3.82

Register Now

FOUNDED DATE2013

DEPOSIT METHOD EFT bank transfers SWIFT transfers crypto Osko/PayID Credit/Debit cards and PayPal

BASED INAustralia

Review

Crypto regulation in New Zealand

Security

Most reputable exchanges can help with these records. In the event of loss through breach of security, you may wish to check if your exchange has any insurance or protection against such circumstances.

Transparency

Crypto is lightly regulated, apart from the legislation against money-laundering and the financing of terrorism, but identification is a prerequisite, along with the need to make formal tax declarations of your gains and trading details. Even if your exchange does not provide records, it is up to you to make sure you have a detailed transaction record of all your dealings.