New Zealand Moves to Implement OECD’s Crypto Reporting Framework by 2026
New Zealand is taking a significant step towards regulating the cryptocurrency industry by introducing legislation to implement the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF). The move, announced by Minister of Revenue Simon Watts, is part of a broader tax bill aimed at enhancing transparency in the crypto asset market and combating international tax evasion.
The Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Bill, introduced on August 26, 2024, outlines plans to integrate the CARF and amendments to the Common Reporting Standard into New Zealand law. The proposed changes are set to take effect on April 1, 2026, giving crypto-asset service providers (CASPs) and users time to prepare for the new regulations.
Under the new framework, New Zealand-based CASPs will be required to collect information on reportable users’ transactions starting from April 1, 2026. These providers must then submit this data to the Inland Revenue by June 30, 2027. Subsequently, the Inland Revenue will share this information with relevant tax authorities globally by September 30, 2027, facilitating international cooperation in tax compliance.
The bill also introduces penalties for non-compliance. CASPs that fail to take “reasonable care” in meeting CARF obligations could face fines ranging from 20,000 to 100,000 New Zealand dollars (approximately $12,000 to $62,000). Additionally, a penalty of 300 New Zealand dollars per instance of non-compliance has been proposed, with a cap of 10,000 New Zealand dollars per tax year. Individual users who fail to provide necessary information could be subject to a 1,000 New Zealand dollar fine.
The government emphasizes that the development of crypto assets has made it challenging for tax authorities to maintain visibility over income and investment opportunities facilitated through intermediaries. By implementing the OECD’s framework, New Zealand aims to address this challenge and ensure that profits derived from crypto trading are properly taxed.
This move aligns with a global trend towards increased regulation of the cryptocurrency sector. Earlier this year, New Zealand’s Minister of Commerce and Consumer Affairs, Andrew Bayly, advocated for a significant overhaul in how the nation regulates digital assets and views blockchain technology.
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