New Zealand Mulls Adoption of OECD Crypto Reporting Standards

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

August 27, 2024 02:12 EDT

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New Zealand’s revenue minister on Monday proposed implementing the OECD’s framework for automatically exchanging crypto-asset financial information to the Legislature.

Minister Simon Watts proposed the implementation through the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Bill.

This legislative move aims to integrate the OECD’s Crypto-Asset Reporting Framework (CARF) and updates to the Common Reporting Standard into New Zealand law.

Consequently, these proposed amendments are scheduled to become effective on April 1, 2026. Starting from then, New Zealand-based reporting crypto service providers will be required to collect information on transactions. Reportable users must execute these transactions through the service providers.

Proposal Includes $300 Fine for Providers, $1,000 for Users Who Fail to Share Information

A penalty of $300 per instance will be imposed on a service provider for non-compliance. Meanwhile, a crypto-asset user faces a $1,000 penalty for not providing required information about themselves or a related person.

These providers must submit this information to Inland Revenue by June 30, 2027. Subsequently, Inland Revenue will share this data with relevant tax authorities by Sept. 30, 2027.

The minister pointed out that the technology behind crypto assets, particularly cryptography, presents unique compliance challenges for tax authorities. As a result, tax officials do not have the same level of oversight over crypto-asset income as they do with income from traditional sources.

New Zealand Moves Toward Stricter Crypto Oversight Amid Calls for Regulatory Changes

Earlier this year, Andrew Bayly, New Zealand’s Minister of Commerce and Consumer Affairs, advocated for a significant overhaul in how the nation regulates digital assets and views blockchain technology.

Transitioning to a more proactive stance, last month, New Zealand’s tax authority announced its focus on crypto traders who have neglected to declare their earnings from these activities in their tax returns.