Summary
- During 2026, New Zealand began implementing the OECD’s Crypto Asset Reporting Framework (CARF), tightening tax oversight of the sector.
- Overall, the country has allowed the crypto and blockchain sector to develop, but hasn’t introduced bespoke legislation.
- Instead, it’s amended existing legislation and implemented rigorous regulatory oversight, addressing challenges and opportunities as they’ve emerged.
- Research released in 2024 revealed that almost 50% of New Zealanders surveyed said that they were considering investing in crypto.
- For more information about how crypto is being used in countries worldwide, visit our Crypto in Action page.
Who uses crypto in New Zealand and how?
Crypto is legal to own and trade in New Zealand, but is not regarded as legal tender. Interest in the sector is growing, with an estimated 227,000 active crypto users in a population of approximately 5.3 million.
In 2026, the authorities made financial literacy a compulsory part of the education curriculum. Although it was widely suggested that this would include crypto, this appears to have been misreported with the focus instead on managing money, savings and budgeting, albeit also considering modern payment infrastructure. The fact that New Zealand has made financial literacy part of the wider teaching program reflects the importance the authorities place on better educating people to make judicious choices about their finances.
What’s the government’s attitude?
The government’s attitude has been broadly welcoming, and its approach has largely been one of “wait and see.” That said, oversight is strict, and there is vigorous enforcement in areas like anti-money laundering (AML). The regulator, the Financial Markets Authority (FMA), issues warnings about financial crimes, including those related to crypto, again reflecting the focus on education and awareness-raising, in this case about the opportunities and risks associated with digital assets.
The crypto and blockchain sector is not expressly regulated. There is no single, bespoke law, and instead the authorities rely on amendments to existing regulation to cover the sector as it develops. These include:
- The Financial Markets Conduct Act, the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, and the Financial Services Providers (Registration and Dispute Resolution) Act 2008 – all of which apply to initial coin offerings (ICOs).
- The Financial Services Legislation Amendment Act, and Financial Markets (Conduct of Institutions) Act, CoFI – apply to those who offer financial advice.
- Income Tax Act 2007, and Goods and Services Tax Act 1985 – govern the taxation of crypto-related business activities and investment gains.
- Fair Trading Act 1986, and Credit Contracts and Consumer Finance Act 2003 (CCCFA) – provide consumers with protection.
- Other laws that cover crypto activities include the Crimes Act 1961, Companies Act 1993, Overseas Investment Act 2005, and Trusts Act 2019.
Legislative changes have also been pursued on an ad hoc basis. In one well-known case (Ruscoe v Cryptopia Ltd), the country’s high court ruled that cryptocurrencies were a form of intangible personal property and could be held on trust.
Crypto oversight falls under several regimes including the:
- Department for Internal Affairs (DIA) – for virtual asset service providers’ AML and combating the financing of terrorism (CFT) compliance.
- Financial Markets Authority (FMA) – to regulate crypto as a financial product, including licensing.
- Inland Revenue Department – covering the tax obligations of crypto transactions.
- Serious Fraud Office (SFO) – investigating and prosecuting serious financial crime.
Why the growing focus on taxation?
Taxation has become an increasing focus for the authorities as the sector has grown.
According to the Inland Revenue Department, tax treatment depends on the characteristics of the crypto asset.
Crypto assets are not subject to goods and services taxation (GST) when bought or sold, but there are GST implications when they are received as payment for normal business activities.
The department also treats crypto assets as excepted financial arrangements, which means that if the asset is trading stock, they are valued at cost at the end of the tax year.
Taxation enforcement was increased during 2026. Since 1 April 2026, the international Crypto Asset Reporting Framework (CARF), developed by the OECD, has been in place, requiring New Zealand-based crypto service providers to collect information about specified transactions. By the end of June 2027, this data must be submitted to the Inland Revenue. In turn, the department will share this information with other CARF-implementing countries, while itself receiving data about foreign investors who are using platforms in New Zealand.
It has been estimated that CARF’s implementation could generate approximately $50 million in additional taxation revenue for the country.
New Zealand’s digital cash and CBDC developments
The Reserve Bank of New Zealand (RBNZ, central bank) has been researching what it terms digital cash. Physical cash transactions have declined markedly, but New Zealanders continue to like the idea of cash. Reflecting the fact that most transactions are digital, the RBNZ has sought consumer feedback on its ideas about the future of money.
What has materialized are plans for a system that functions like physical banknotes but is electronic in form. Notably, the emerging system would be government-backed, run alongside physical cash, and potentially allow for instant, P2P transactions without the need for internet or power.
This reflects research that revealed that 84% of those surveyed don’t want to lose the ability to use cash, and 60% felt that current payment systems fail to offer the services that customers want, specifically, the option to make payments without power or an internet connection.
Notably, trust remains an issue for digital cash. Of the respondents, 90% feared that their spending would be monitored or controlled, and 46% had wider privacy concerns.
There are two primary stablecoins that are pegged to the New Zealand dollar: NZDD and NZDS. In March 2026, the authorities determined that the first of these was not a financial product (for the purposes of the FMC Act), meaning that, by treating it solely as a payment mechanism, the authorities have effectively endorsed its use as a digital cash alternative.
Timeline of legislative and other developments
2018
The IRD said that, for taxation purposes, crypto was treated as property, and taxes should be paid on gains from crypto sales, if the purpose of buying and selling was for resale.
2019
Local platform, Cryptopia was hacked, resulting in estimated losses of $16 million.
2020
The high court ruled in Ruscoe v Cryptopia Ltd that cryptocurrencies constituted legally recognized property.
2021
In July, parliament announced an inquiry into the “current and future nature, impact, and risks of cryptocurrencies.”
The IRD began updating its crypto taxation policies.
2023
New Zealand-based crypto asset exchange, Dasset, collapsed in August, leaving NZ$6.3 million in cryptocurrency missing. The SFO continues an investigation into the company and the events surrounding its collapse.
2024
In March, the Financial Market Infrastructures (FMI) Standards came into effect and became applicable to certain crypto asset platforms, enhancing oversight and aligning with international principles.
The RBNZ released a technical update, which outlined the basic design principles for a digital cash prototype.
In December, the RBNZ reported that its stakeholder consultation about the future of money had attracted the greatest response it had ever achieved.
The same month, following high court approval, approximately 10,000 Cryptopia account holders received NZ$400 million in crypto.
Also in December, the FMA launched a regulatory sandbox to support those testing crypto and fintech applications.
2025
In March, the FMA launched a paper about tokenization.
In August, the authorities banned cryptocurrency ATMs over fears of their use to launder money, and support illicit finance.
In October, Blockchain NZ launched the Parliamentary Digital Assets Working Group (DAWG) – a cross-party initiative aiming to unite a number of parliamentarians, regulators, and industry leaders.
2026
In March, the Financial Markets Conduct (ECDD Holdings Limited Stablecoin) Designation Notice 2026 was passed relating to the stablecoin NZDD.
The authorities introduced financial literacy to the national curriculum.
Outlook
No major changes are expected to the outlook for New Zealand’s crypto and blockchain sector in the short term. User sentiment is expected to remain broadly positive but cautious. The authorities will continue to tighten oversight and regulation, but there are no signs of bespoke legislation for the sector. The financial infrastructure continues to develop, with blockchain infrastructure and crypto products increasingly becoming part of the traditional financial system.
