New Zealand has a unique crypto approach; it treats digital currencies as property rather than actual money. Crypto trading became legal in 2018 when New Zealand recognized it as property for tax purposes. The nation opts for clever crypto approaches, as the interest in digital asset investments is growing rapidly.
As of 2025, New Zealand is tightening its hold on security to enhance transparency and combat tax evasion in the region. While the country has not regulated specific crypto laws this year, it has indirectly impacted crypto with fintech laws.
Crypto regulations in New Zealand 2025
July 9, 2025 – Ban of Crypto ATMs and Cap International Transfers At NZ$5,000
The New Zealand government took a bold step to ban crypto ATMs and cap international cash transfers at $5,000. After the officials of New Zealand noted that crypto kiosks mainly attract users seeking anonymity to covert illegal funds, the government took an immediate decision to ban Bitcoin banks.
April 1, 2026– Introduction of OECD in Crypto-Asset Reporting Framework (CARF)
The Organisation for Economic Co-operation and Development’s (OECD) CARF, through the Taxation Act 2025, will come into effect in 2025. It aims at enhancing transparency and combating tax evasion in the crypto space while establishing rules for crypto asset services providers (CASPs). Crypto transaction reporting obligations for CASPs will be mandatory under this law.
March 31, 2025- Conduct of Financial Institutions (CoFI)
Under this legislation, fair conduct principles for financial institutions, including crypto, are compulsory. While this legislation does not directly regulate crypto as a financial product, it does impact how financial institutions dealing with crypto assets conduct themselves.
March 2025- Financial Markets Authority (FMA) Regulatory Sandbox
FMA announced a regulatory sandbox for 2025, where fintech companies, including developing blockchain corporations, can test innovative products under supervision. It also fosters collaboration between the government and the crypto industry, promoting consumer protection and market integrity.
March 29, 2025- Consumer and Product Data Act
This law introduces a legislated consumer data right (CDR) in the financial sector. While this law does not directly regulate crypto, it can indirectly impact data rights and data sharing in the digital industry and blockchain developments.
What is the New Zealand Government Saying About Crypto?
The Financial Market Authority (FMA) is the key regulator of cryptocurrency and digital assets in New Zealand. Currently, the agency is focusing on licensing and tax regimes while releasing warnings against crypto scams in the region.
The agency released a set of crypto scams in New Zealand while suggesting some tips for investments to avoid such situations. One of the biggest crypto risks in New Zealand, according to the FMA, is the inability to find out the entity offering services.
FMA said that due to big overseas crypto exchanges, it is hard to find out who is offering, buying, selling, or exchanging crypto, putting the assets at risk of theft. It stated–
“Because it is decentralised by nature, there’s no control by a single entity such as a government, bank, or financial institution – there are no restrictions on who can issue them.”
Crypto License in New Zealand 2025
Licensing: While there are no specific crypto licenses in New Zealand, crypto asset service providers (CASPs) and wallet service providers must register with the Financial Markets Authority (FMA) as financial service providers (FSPs) to obtain a crypto license to continue operations. Compliance: CASPs, wallet service providers, and businesses involved with crypto must comply with anti-money laundering (AML), counter-terrorism financing (CFT), and the know-your-customer (KYC) obligations. Reporting: Entities providing digital asset services may be required to report their transaction and other information to FMC, especially if any suspicious activity is discovered.
Crypto Tax in New Zealand 2025
Capital Gains Tax (CGT): CGT does not apply to crypto in New Zealand, as it considers crypto as property. Income Tax: Earning and disposing of crypto is subject to general income tax in New Zealand.
The key advisor on government tax policies in New Zealand, the Inland Revenue Department (IRD), said in a statement–
“If you acquire crypto assets to dispose of them, you need to pay income tax on any profit you make. For example, if you buy or mine crypto assets to sell or exchange them. If you make a loss when you sell your crypto asset, you may be able to claim this loss.”
Income tax bracket
Crypto Adoption in New Zealand 2025
User Penetration Rate: Currently, the user penetration rate is projected to be 33.59% and is forecasted to increase to 34.78% by 2026. The number of crypto users is expected to reach 1.84 million by 2026. Crypto Revenue: In 2025, the crypto revenue is projected to reach US$174.1 million, which is anticipated to show an annual growth of 15.37%, resulting in a projected total amount of US$200.8 million by 2026. Crypto Holdings: No public information on the government’s crypto holdings in New Zealand is available; no indication or evidence that the government is investing or holding any digital assets.
Conclusion
Despite legal uncertainties, the crypto market in New Zealand is growing as the popularity of digital assets has spread worldwide. The government of New Zealand is currently taking a “wait and see” approach to cryptocurrency, not providing much clarity in the regulations. If the country provides legal transparency on digital assets, it may boost the adoption rate and expand the national economy.
Also read: Crypto Regulations in Italy 2025
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FAQs
New Zealand has a “wait and see” approach to crypto, treating it as property for tax purposes since 2018. While not fully regulated, growing interest and a regulatory sandbox indicate a developing, cautious friendliness.
Crypto profits in NZ are subject to income tax, not capital gains tax. This applies to earnings from acquiring or disposing of crypto, taxed at your marginal income tax rate.
Your crypto tax rate in NZ depends on your total annual income, ranging from 10.5% to 39%. Profits from crypto are added to your overall income for tax calculation.
The Financial Market Authority (FMA) is the key regulator for cryptocurrency and digital assets in New Zealand, focusing on licensing, tax regimes, and combating scams.
