New Zealand is a promising player in cryptocurrency regulation. The country has a moderate tax base and no licensing for transactions with crypto assets since they are assigned to securities.
Country overview
#72
New ZealandCountry stats
Rating Points
150
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
1.3%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
Empty
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
100
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
66 300
Total amount of crypto users out of the country's total population based on public data.
Taxation points
10
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
94.2
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
Legally allowed
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
No info
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
Minor danger
The overall level of security in a given country based on open data.
Crypto Salaries
Legally allowed
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
Medium
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
Low
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
No
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
Crypto-to-fiat
This type of license regulates the exchange from cryptocurrency to fiat.
Crypto-to-crypto
This license type allows VASP to provide legal exchange from one cryptocurrency to another.
Wallet/Custody
This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.
Good
Medium
Bad
New Zealand has a minor danger security level, according to our rating. Jurisdiction has 52,9 points (from 100) for safety level in Numbeo crime rating (1). Homicide level (2) is 2,6 per 100,000 inhabitants a year. Story of firearm-related death (3) 1,24 per 100,000 inhabitants a year.
No data.
New Zealand's Inland Revenue Department has made(4) it legal to receive salaries in cryptocurrency and be taxed(4¹) accordingly. (August 2019).
The Financial Markets Authority (FMA) is responsible (5) for regulating financial products in New Zealand, and the Financial Markets Conduct Act 2013 (FMCA) is the principal piece of legislation regulating financial products. The primary purposes of the FMCA are to promote the confident and informed participation of businesses, investors, and consumers in New Zealand's financial markets and to promote and facilitate the development of fair, efficient, and transparent financial markets.
Offers of financial products in New Zealand are regulated by the FMCA and regulations made under the FMCA (the Regulations).
Definition of crypto assets by local tax office (IRD)(6)
Virtual currencies are regulated(7) by the FMCA only to the extent that a particular virtual currency meets the definition of one of these categories of financial products. The FMCA sets out a hierarchy of financial products, such that a virtual currency that would prima facie satisfy the definition of more than one financial product category will default into only one category.
Types of VASPs(7¹) according to Department of Internal Affairs(8) NZ
Binance New Zealand Donates Over $250K To Support Dave Letele’s BBM Auckland Flood Relief Efforts(9)
Because most legislation in New Zealand is technology-neutral, no legislation specifically regulates cryptocurrencies in the country. However, tax and contract laws apply. The Inland Revenue Department (IRD) declared that cryptocurrencies would be treated as property beginning(10) in 2018.
| Tax name | Index |
| PIT tax Min | 10,5 |
| PIT tax Max | 39 |
| Corporate tax (CIT) | 28 |
| Min Individual CGT (for crypto) | 10 |
| Max Individual CGT (for crypto) | 39 |
| Wealth tax Min | 0 |
| Wealth tax Max | 0 |
CIT
Headline CIT rate is 28%, according to PWC(12).
PIT
The headline PIT rate is 39% based on PWC(12).
CGT
New Zealand does not have a comprehensive capital gains tax. However, capital gains derived by a company will generally be taxed as dividends on distribution to shareholders, subject to certain exceptions (10% - 39%) by PWC(12).
1)Safety Index by Country 2023 Mid-Year
2)List of countries by intentional homicide rate
3)List of countries by firearm-related death rate
4)New Zealand Tax Office Makes It Legal to Pay Salaries in Crypto. Article
4¹)Tax information. PDF file
5 and 7)Virtual Currency Regulation: New Zealand. Article
6)He aha ēnei mea ngā rawa whiti-rangi. What are cryptoassets? Article
8)Te Tari Taiwhenua | Department of Internal Affairs. Article
9)Binance New Zealand Donates Over $250K To Support Dave Letele’s BBM Auckland Flood Relief Efforts. Article
10)An overview of the cryptocurrency regulations in New Zealand. Article
11)Financial Service Providers Register. Article
12)Overview. PWC