Crypto in New Zealand 2025: Regulation, Licensing, and Adoption Trends

New Zealand continues to approach cryptocurrency with a unique and evolving regulatory stance. Rather than treating crypto as legal tender, the country recognizes it as property for tax purposes—a move that has shaped its digital asset landscape since 2018. As interest in crypto investments grows, so does the government's push for transparency, security, and regulatory clarity.

Crypto Regulations in New Zealand 2025

Though New Zealand has yet to pass specific crypto-targeted legislation in 2025, several laws and regulatory frameworks introduced this year have indirectly influenced the crypto ecosystem.

April 1, 2026 – OECD Crypto-Asset Reporting Framework (CARF)

Through the Taxation Act 2025, New Zealand will implement the OECD’s Crypto-Asset Reporting Framework (CARF). This law:

• Increases transparency in digital asset transactions
• Mandates reporting requirements for Crypto Asset Service Providers (CASPs)
• Aims to combat tax evasion and promote accountability in the industry

March 31, 2025 – Conduct of Financial Institutions (CoFI)

The CoFI Act enforces fair conduct principles for all financial institutions, including those involved in crypto. While it doesn't classify crypto as a financial product, it:

• Regulates how institutions dealing with crypto treat customers
• Promotes fairness and ethical standards in digital asset services

March 2025 – FMA Regulatory Sandbox

The Financial Markets Authority (FMA) launched a regulatory sandbox to:

• Let fintech and blockchain startups test products under supervised conditions
• Foster government-industry collaboration
• Encourage innovation while maintaining consumer protection

March 29, 2025 – Consumer and Product Data Act

Although not crypto-specific, this law introduces a Consumer Data Right (CDR) in the financial sector. Its implications for crypto include:

• Empowering users with greater control over personal data
• Supporting blockchain-based data sharing and decentralized finance (DeFi) solutions

What the New Zealand Government is Saying

The FMA remains the central regulator for cryptocurrency activities in New Zealand. It has:

• Focused on licensing and tax policy enforcement
• Issued warnings about rising crypto scams
• Emphasized the risks of decentralized systems, especially with overseas exchanges

“Because it is decentralised by nature, there’s no control by a single entity... there are no restrictions on who can issue them,” — FMA statement.

🪪 Crypto Licensing in New Zealand (2025)

There are no crypto-specific licenses in New Zealand, but CASPs and wallet providers must:

• Register with the Financial Markets Authority (FMA) as Financial Service Providers (FSPs)
• Comply with AML/CFT/KYC regulations
• Report suspicious activity to regulators like the FMA

This regulatory structure provides basic oversight while still giving the crypto space some flexibility to grow.

Crypto Taxation in New Zealand (2025)

Capital Gains Tax (CGT):

• Not applicable to crypto—crypto is classified as property, not securities or currency.

Income Tax:

• Profits from buying, mining, selling, or exchanging crypto are taxed as income.
• Losses may be claimed against income, depending on intent and use case.

"If you acquire crypto assets to dispose of them, you need to pay income tax on any profit you make." – Inland Revenue Department (IRD)

Crypto Adoption Trends in New Zealand (2025)

User Growth

• User penetration rate: 33.59% in 2025
• Projected to reach 34.78% by 2026
• Expected users: 1.84 million by 2026

Crypto Revenue

• 2025: Estimated at US$174.1 million
• 2026 projection: US$200.8 million, showing a 15.37% annual growth

Government Holdings

• No public data available
• No indication that the New Zealand government is currently investing in or holding digital assets

Conclusion

New Zealand’s approach to crypto in 2025 remains cautious but forward-looking. Rather than implementing strict regulations, the government has opted to indirectly shape the industry through broader fintech laws and consumer protections.

While crypto is legally recognized as property, the absence of a full regulatory framework has left some uncertainty. Still, increasing user adoption, growing revenues, and innovation-friendly initiatives like the FMA sandbox indicate strong potential.

If New Zealand introduces more clear and targeted crypto laws, it could further legitimize the industry, attract foreign investment, and stimulate national economic growth in the digital era.

JUly 2025, Cryptoniteuae