Frequently asked questions
There are a number of exchanges which allow New Zealand residents to buy bitcoin. A few of them
are owned locally, including Easy Crypto and BitPrime. In the former case, you’ll need a private
wallet to receive settlement on any purchase. With that said, popular global exchanges are also
popular with many New Zealand-based bitcoin traders. You can use CryptoRadar to assess your options
when it comes to exchanges.
Some exchanges will allow you to make payments directly using the New Zealand dollar, while
others will insist that you make an exchange into the US dollar first before you invest in Bitcoin.
Again, you can see exactly what’s what by comparing them using CryptoRadar.
In New Zealand, cryptocurrencies are treated as financial services, and regulated by a government
body called the Financial Markets Authority. This means that exchanges and wallet providers need to
declare themselves, and meet with certain obligations, as do new ventures offering Initial Coin
Offerings.
In late 2020, New Zealand’s Inland Revenue updated their guidance on the treatment of ‘cryptoassets’ for tax purposes. Accordingly, digital assets are considered a form of property rather than a form of currency. Since the country lacks a capital gains regime, this means that you’ll only be taxed if you’re buying Bitcoin with a view to selling it — if you’re looking to HODL indefinitely, then
you’re off the hook.
Interestingly, businesses which don’t fit the traditional definition of a crypto-asset business, but do
find themselves dealing in bitcoin, might also find themselves liable for additional income tax, in the
same way that they might if the cryptocurrency were any other form of asset.
Bitcoin is the first decentralized digital currency and the leading cryptocurrency worldwide. Bitcoin serves as a store of value and is therefore often referred to as digital gold. Read our guide on Bitcoin to learn more about this cryptocurrency.
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