- Proposed Legislation and Objectives of Changes
- Requirements for Crypto Services and Users
- International Examples: Nigeria's Experience
New Zealand’s Revenue Minister, Simon Watts, has proposed integrating the OECD’s framework for gathering crypto-asset financial information into the national framework.
Proposed Legislation and Objectives of Changes
The proposed legislation, part of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Bill, seeks to align New Zealand’s regulations with the OECD’s Crypto-Asset Reporting Framework (CARF) and updates to the Common Reporting Standard. If enacted, these changes will mandate that crypto service providers based in New Zealand collect and report detailed information on transactions involving crypto-assets.
Requirements for Crypto Services and Users
The new regulations are expected to take effect on April 1, 2026. From this date, crypto service providers in New Zealand will be required to gather transaction data on reportable users and ensure these transactions are conducted through their services. A $300 penalty per incident will be enforced on service providers who fail to comply, while crypto-asset users will incur a $1,000 fine for not supplying necessary information about themselves or associated individuals.
International Examples: Nigeria's Experience
Similarly, Nigeria’s Federal Inland Revenue Service (FIRS) recently announced plans to propose a bill to regulate the cryptocurrency sector by the end of 2024. The FIRS Executive Chairman Zacch Adedeji reportedly noted that the proposed legislation would set guidelines, enhance oversight, address risks, and boost economic benefits. Senator Mohammed Musa, Chairman of the Senate Committee on Finance, emphasized that cryptocurrency is a major revenue source. He said the proposed bill would introduce regulations to help Nigeria generate funds for infrastructure and human capital development.
The proposed changes in New Zealand could significantly impact crypto-asset reporting requirements, demanding more detailed information from crypto services and users. This can be seen as an important step towards enhancing financial transparency and aligning with global standards.
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