Crypto License in New Zealand
New Zealand provides a favorable environment for cryptocurrency companies with progressive legal regulation and a clear taxation system. Gofaizen & Sherle offers remote support and assistance in launching a cryptocurrency business in New Zealand, providing comprehensive turnkey solutions to successfully launch your project.
New Zealand provides a progressive jurisdiction for cryptocurrency transactions regulated by the Financial Markets Authority (FMA). The country does not require a separate Crypto license in New Zealand but classifies crypto assets as securities subject to regulatory controls. New Zealand’s cryptocurrency taxation system offers a structured approach, including tax on income from the mining, trading, and use of cryptocurrencies. Cryptocurrency companies are required to register with the Financial Service Providers Registry (FSPR) and comply with AML/CFT measures.
The country’s laws are technology-neutral, and while there are no specialized laws for cryptocurrencies, tax and contract laws still apply. In addition to registration, which can be considered the equivalent of obtaining a Cryptocurrency exchange license in New Zealand, tax and treaty laws apply to the activity, as cryptocurrencies are treated as property from 2018, resulting in tax liabilities.
Advantages of Obtaining a Crypto License in New Zealand
Technology-neutral legislation
New Zealand enforces laws that are universal across all financial technologies, ensuring a level playing field for all types of financial transactions, including cryptocurrencies.
Progressive taxation
Cryptocurrency transactions are taxed based on income, allowing for adaptation to market volatility and flexibility for investors and traders.
Strict anti-money laundering measures
New Zealand strictly monitors financial transactions to prevent financial crime, which enhances investment security.
Active development of the regulatory framework
The country is constantly improving its regulatory framework to ensure a balance between supporting innovation and necessary government oversight.
Openness to international investors
New Zealand offers an attractive environment for foreign entrepreneurs wishing to run a cryptocurrency business, thanks to loyal laws and support for new technologies.
The legal position of cryptocurrency mining
Mining is recognized as a legal activity in New Zealand. It is taxable, while miners can take into account the costs associated with the activity, which contributes to the development of the cryptocurrency industry in the country.
Request more information about the New Zealand Crypto License
Requirements for a crypto license in New Zealand
Crypto licenses in New Zealand requirements are not issued separately but are included in the certificate for multi-tasking. Requirements include:
- A cryptocurrency exchange and office must be registered in New Zealand
- Pay all applicable fees and taxes prescribed for each category of financial services.
- Companies must comply with the provisions of the Financial Markets Act (FMC).
- Issuers of financial products, including cryptocurrencies, must comply with the law’s regulations, which include rules on fair trading, disclosure, risk management, and compliance with operational standards.
- The FMCA requires financial institutions to act fairly and honestly and avoid misleading practices.
- The obligation is to provide complete and accurate information about financial products so that consumers can make informed decisions.
- Institutions must monitor their compliance with their duties under the FMCA and be prepared for inspections by the Financial Markets Authority.
- Companies must register with the Financial Services Providers Registry (FSPR) and provide publicly available data about their business, including addresses, lists of services, and dispute resolution information.
- Crypto-crypto companies must be registered with one of the recognized Dispute Resolution Services, which administer dispute resolution and complaints procedures.
- Registered companies must comply with anti-money laundering legislation, including accurate identification of customers and protection of their data.
Company registration in New Zealand
Registration of cryptocurrency companies in New Zealand provides them with legal status and the possibility of receiving tax benefits. These businesses fall under the category of financial services operations, and their regulation depends on the type of crypto assets offered. The Financial Markets Authority of New Zealand (FMA) oversees their operations, requiring them to adhere to strict rules and regulations. The process of registering a cryptocurrency company in New Zealand consists of the following steps:
Determining the type of business, name, and required New Zealand crypto license
Step 1
- Before starting the process, you need to determine the type of business activity of the company, as this determines the type of license required. You also need to make a reservation for a unique name for the company.
Collect and prepare documents
Step 2
You need to prepare and collect the following documents:
- Completed application form.
- Copies of constituent documents.
- A detailed business plan.
- Evidence of financial stability.
- Copies of passports of owners and managers.
- Certificates of the absence of criminal records of the managers.
Physical office and business registration
Step 3
- The company must be registered in New Zealand, including a physical office.
Payment of state fees
Step 4
- The relevant state fees must be paid for the registration of each type of financial service.
Develop internal rules
Step 5
- The company must have well-defined internal rules and procedures to prevent customers from being defrauded.
Appointing a director
Step 6
- At least one director of the company must be physically present in New Zealand for more than 183 days during the year.
Find out more information about the New Zealand Crypto License
Cryptocurrency Regulations in New Zealand
Cryptocurrency regulation in New Zealand covers several key aspects and relies on technology-neutral legislation. The main regulator is the Financial Markets Authority (FMA). It is an independent organization established in 2011 to regulate the country’s financial markets. FMA’s main objective is to promote fair, efficient, and transparent financial markets. The organization monitors industry compliance, enforces laws, investigates violations, and provides information to help consumers make financial decisions.
FMA is guided by the Financial Markets Conduct Act of 2013 (FMCA). This law includes fair trading requirements and enforces disclosure rules.
Cryptocurrencies are recognized as proprietary
Cryptocurrencies have been recognized as property for tax purposes since 2018, which entails the need to pay taxes on profits from their sale. In addition, cryptocurrency transactions are regulated by the Anti-Money Laundering and Countering the Financing of Terrorism Act 2009, which requires crypto companies to maintain accurate financial records and anti-money laundering measures.
The Financial Services and Providers Act 2008 (FSPA) also plays an important role by requiring financial service providers to obtain the appropriate licenses and register with the relevant registries. Alongside this, the Fair Trading Act 1986 and the Consumer Guarantees Act 1993 protect the rights of consumers, including cryptocurrency investors.
New Zealand’s regulatory system emphasizes the need to balance supporting innovation with ensuring adequate oversight to protect investors and maintain the integrity of the financial market.
Taxation in New Zealand
New Zealand does not have a special tax regime for capital gains. Cryptocurrency gains are treated together with other sources of income and taxed in the same way as ordinary income. If cryptocurrency is disposed of at a loss, this can reduce taxable income for the year.
The taxation of cryptocurrency income falls under the normal income tax rates set by the Inland Revenue New Zealand (IRD). Whether income is derived from the sale, appreciation, or mining of cryptocurrency, it is taxed under a progressive tax system.
Regarding the taxation of cryptocurrency companies, the following tax provisions apply in New Zealand:
- Corporate income tax: The standard corporate income tax rate for resident companies is 28%.
- Withholding tax: taxation of dividends is generally exempt from income tax.
- Social Security contribution: the minimum employee contribution rate is 3% of gross salary.
- VAT: crypto assets are not subject to goods and sales tax.
- Other tax liability: there is a fringe benefit tax that applies to certain employers with rates starting at 49.25%.
FAQ about New Zealand crypto license
Is cryptocurrency regulated in New Zealand?
Yes, cryptocurrency is regulated in New Zealand. It falls under tax and treaty laws. The Inland Revenue Department (IRD) has treated cryptocurrency as property since 2018. The Financial Markets Conduct Act also applies.
How to get a crypto license in New Zealand?
There is no specific New Zealand crypto license, but if you want to do business related to cryptocurrency, you may need to register as a financial provider. To do so, you will need to apply to the Financial Markets and Services Authority (FMA) of New Zealand and fulfill several requirements, including providing information about your business, financial performance, and compliance policy.
Does New Zealand accept crypto?
Cryptocurrency is accepted in New Zealand, but the country has yet to make major regulatory changes. The Inland Revenue Department (IRD) treats cryptocurrency as property but does not recognize it as legal tender.
Connect with our experts
Our experts will tell you how to do it as quickly and easily as possible.
By clicking the button, I confirm that I have read the privacy policy and consent to the collection and processing of my personal data in accordance with the GDPR rules.
to our news & insights