New Zealand Proposes Implementation of OECD Crypto Reporting Standards

TLDR:

• New Zealand proposes implementing OECD’s Crypto-Asset Reporting Framework (CARF)
• New requirements for crypto service providers to collect and report user information
• Implementation set to begin April 1, 2026, with first reports due June 30, 2027
• Penalties for non-compliance range from NZD 300 to 100,000 for providers
• Users face NZD 1,000 fine for failing to provide necessary information

New Zealand is taking steps to implement the Crypto-Asset Reporting Framework (CARF) developed by the Organisation for Economic Co-operation and Development (OECD).

This move, proposed by Revenue Minister Simon Watts, aims to enhance transparency in cryptocurrency transactions and ensure proper taxation of crypto-related income.

The proposal was introduced as part of the “Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Bill” on August 26, 2024.

If passed, the new regulations would require New Zealand-based crypto service providers to collect and report information on their users’ transactions starting April 1, 2026.

Under the proposed framework, reporting crypto-asset service providers (RCASPs) would need to gather data on reportable users operating through their platforms.

This information would then be submitted to Inland Revenue, New Zealand’s tax authority, by June 30, 2027.

The collected data would be shared with relevant tax authorities worldwide for users in other jurisdictions by September 30, 2027.

The primary goal of this initiative is to provide tax authorities with better visibility over income generated from cryptocurrency trading.

As the technology behind crypto assets, particularly cryptography, presents unique compliance challenges, tax officials currently lack the same level of oversight they have with traditional income sources.

Fines for Non-Compliance

To ensure compliance, the proposal includes a system of penalties. RCASPs that fail to meet the new reporting requirements could face fines of 300 New Zealand dollars (approximately $186) per instance of non-compliance, with a cap of 10,000 NZD ($6,200).

However, if service providers are found to have not taken “reasonable care” in meeting CARF requirements, they could be subject to more substantial fines ranging from 20,000 to 100,000 NZD ($12,000 to $62,000).

Individual users are not exempt from these regulations. Those who fail to provide the necessary information for compliance could face a 1,000 NZD ($621) fine.

This move by New Zealand aligns with a growing global trend towards increased regulation and oversight of the cryptocurrency sector.

It follows earlier calls from Andrew Bayly, New Zealand’s Minister of Commerce and Consumer Affairs, for a significant overhaul in how the nation regulates digital assets and views blockchain technology.

The implementation of the CARF is part of a broader effort to modernize New Zealand’s approach to crypto assets.

Last month, the country’s tax authority announced its focus on crypto traders who have not declared their earnings from these activities in their tax returns.

As cryptocurrencies continue to gain popularity and integrate into the mainstream financial system, governments worldwide are grappling with how to effectively regulate and tax these digital assets.

New Zealand’s adoption of the OECD’s framework represents a significant step towards creating a more transparent and accountable crypto ecosystem within the country.

As the April 1, 2026 implementation date approaches, crypto businesses in New Zealand will need to prepare their systems and processes to comply with these new reporting requirements. Users of these services should also be aware of their obligations under the new framework and the potential penalties for non-compliance.