Summary: New Zealand to Implement OECD’s Crypto-Asset Reporting Framework
New Zealand is taking steps to enhance transparency in cryptocurrency transactions and proper taxation of crypto-related income by proposing the implementation of the Crypto-Asset Reporting Framework (CARF) developed by the Organisation for Economic Co-operation and Development (OECD). This move, introduced as part of a tax bill, will require crypto service providers to collect and report user information starting from April 1, 2026. The primary goal is to provide tax authorities with better visibility over income generated from cryptocurrency trading due to the unique compliance challenges presented by crypto assets.
: Fines for Non-Compliance
- RCASPs could face fines of up to 10,000 NZD for non-compliance
- Heavier fines ranging from 20,000 to 100,000 NZD for lack of “reasonable care”
- Individual users may be fined 1,000 NZD for not providing necessary information
: New Zealand’s Efforts to Regulate the Crypto Sector
New Zealand’s proposal aligns with the global trend towards increased regulation and oversight of the cryptocurrency sector. The country’s tax authority has announced a focus on crypto traders who have not declared their earnings in tax returns. With the adoption of OECD’s framework, New Zealand aims to create a more transparent and accountable crypto ecosystem within the country, reflecting the broader effort to modernize regulations in the digital asset space.
: What to Expect as the Implementation Date Approaches
As the April 1, 2026 implementation date nears, crypto businesses in New Zealand will need to prepare for compliance with the new reporting requirements. Users of these services should familiarize themselves with their obligations under the framework and be aware of the potential penalties for non-compliance.
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