New Zealand Introduces Crypto-Reporting Bill to Implement OECD

• New Zealand’s new taxation bill aligns with the OECD’s CARF, imposing penalties for non-compliance starting in 2026.
• The Reserve Bank of New Zealand is exploring the potential benefits of implementing CBDC.

The Ministry of Revenue introduced the taxation bill. This new proposal is to implement the crypto-reporting framework created by the Organisation for Economic Cooperation and Development (OECD). This was introduced by Hon Simon Watts on 26 August 2024. The proposals will take effect from 1 April 2026, with the first reports due by June 30, 2027.

The bill would incorporate the CARF proposal into New Zealand law. Since the crypto assets are transferred and stored digitally, the OECD developed the Common Reporting Standard. To gather information and report the financial account information of entities investing outside the jurisdiction. The implementation of the Crypto-asset Reporting framework (CARF) is for automatically exchanging financial information regarding crypto-assets. 

Furthermore, the jurisdictions need to ensure they properly enforce the CARF, if not new civil penalties will be introduced to support the CARF. These penalties will be similar to those already in place under New Zealand’s Tax Administration Act 1994. 

Following this, non-compliance could result in fines ranging from $12,000 to $62,000. The penalties will apply to crypto-asset service providers in New Zealand and their users if they don’t meet the requirements. 

CBDC in New Zealand

The Reserve Bank of New Zealand has released a consultation paper to gather public and expert opinions on the idea of creating a Central Bank Digital Currency (CBDC). This will be private and secure. This CBDC would be a digital form of the country’s official currency, directly issued by the central bank, similar to physical cash but in a digital format. 

In addition, the paper discusses the potential benefits and challenges of issuing a CBDC in New Zealand. The Reserve Bank is seeking feedback on how a CBDC could improve financial inclusion, enhance the payments system, and support the country’s monetary policy. 

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