You must have heard of cryptocurrencies such as Bitcoin and Ethereum, which have gained global popularity. In New Zealand, new cryptocurrency exchange platforms are emerging every day. This trend may impact your business and should pique your interest, whether you see cryptocurrency as a business opportunity or an innovative payment alternative for your business.
However, cryptocurrency is still in its early stages, and many people and governments are skeptical about it. Besides, government institutions are yet to provide an adequate legal structure to guide people in dealing with these currencies.
This post will focus on cryptocurrency in New Zealand, from whether it’s legal to how it works. Let’s go!
Is Cryptocurrency Legal in New Zealand?
Yes, cryptocurrency Is legally accepted in New Zealand.
New Zealand is one of the nations that are yet to regulate cryptocurrency. However, in 2018, its Inland Revenue Department (IRD) and Reserve Bank (RBNZ) reported that they were thinking of making rules to guide the use of cryptocurrency.
The RBNZ also clarified that there were no laws prohibiting the use of cryptocurrencies, so they should be handled like a regular financial instrument.
While the cryptocurrency industry is still in its early phases, it’s becoming increasingly popular worldwide. And New Zealand is not exempted as many new crypto exchange platforms are emerging every day in the country. This has left many New Zealanders wondering how the crypto trend may impact their businesses soon.
Cryptocurrencies are speculative and high-risk investments that operate differently from traditional investments. Therefore, you’re advised to invest strategically and use the famous New Zealand exchange sites to safeguard your investment.
The Top Cryptocurrencies to Invest in New Zealand
Cryptocurrency refers to virtual currency bought online, through crypto exchanges, or ICO (Initial Coin Offerings).
While cryptocurrencies don’t exist in physical notes or coins, some exchange firms can transfer their value to the New Zealand Dollar.
Cryptocurrency is becoming more popular among New Zealanders as an online investment scheme, or a means to purchase products online.
Here are the best 20 crypto-coins in New Zealand that you can invest in:
- Bitcoin – BTC
- Ethereum – ETH
- Ripple – XRP
- Litecoin – LTC
- Dash – DASH
- Monero – XMR
- Shiba – SHIB
- DogeCoin – Doge
- Cardano – ADA
- VeChain – VET
- Neo – NEO
- Binance Coin – BNB
- Stellar Lumens – XLM
- TRON – TRX
- IOTA – MIOTA
- NEM – XEM
- SafePal – SFP
- Waves – WAVES
The prices of cryptocurrencies fluctuate, so expect the costs of the above-listed cryptocurrencies to change at any moment.
Be sure to carry out intensive research before investing in cryptocurrency.
Is Cryptocurrency Regulated in New Zealand?
Currently, the New Zealand government has not yet set policies to regulate the use of Cryptocurrency in its economy. However, cryptocurrencies are also not prohibited, so that they can be exchanged even without any government laws in place yet.
While this is not necessarily bad, it comes with tons of investment risks for individuals blinded by the cryptocurrency trend who do not do their research before investing.
Are New Zealand Banks Accepting Cryptos?
Currently, all the New Zealand banks are not accepting any cryptocurrency. There are tons of other places to buy these currencies in New Zealand.
Meanwhile, most cryptos such as Bitcoins are accepted worldwide, posing a massive threat to the New Zealand Banking sector.
This implies that international companies with branches in the country may prefer to tap into the global market.
The New Zealand crypto exchanges allow New Zealanders to trade and exchange cryptocurrencies such as Bitcoins using the local currency without any hassle. There are numerous alternatives for NZD exchange, such as wire transfers, bank deposits, and even credit cards.
You’re free to purchase any amount of bitcoins you want, from as little as $20 to $100,000, without worrying about privacy and security issues.
How Can I Buy Bitcoin in New Zealand?
You can buy your bitcoin, or any other cryptocurrency of your choice, from the famous New Zealand exchanges sites.
However, there are a couple of things to consider when choosing a cryptocurrency platform to trade on. These factors include the platform’s safety level, rates, and reputation. You also need to determine if there are hidden costs when buying digital coins.
There are many reputable and trustworthy exchange platforms in New Zealand:
- Swift (Overall best in NZ)
- Binance (Best for major trading)
- Crypto.com (Best for staking)
- Independent Reserve (Best for crypto insurance)
- Easy Crypto NZ (Best for swift purchases)
- KuCoin (Best for altcoins)
Can I Use a Credit Card to Buy Crypto in New Zealand?
Yes, you can use credit cards to buy cryptocurrencies in New Zealand.
However, since there are no regulations on trading with cryptocurrency in New Zealand, using a credit card to purchase cryptocurrency comes with high risks. There is no recommended method of buying cryptocurrency.
Still, while purchasing crypto with your credit card, you’ll pay an additional fee, usually about 5–10% of the transaction value.
Another issue concerning buying crypto using a credit card is that you’ll most likely be limited on the amount of cryptocurrency you can purchase at a time. The exchange platforms might need you to regularly verify your credentials to let you transact above the preset limit.
Various exchanges that accept credit cards allow instant deposits and withdrawals.
Is Coinbase Legal in New Zealand?
Yes, the Coinbase exchange operates legally in New Zealand. And New Zealanders can safely trade their digital coins on this site.
However, Coinbase has not partnered with any New Zealand banks. Therefore, they don’t provide debit cards or bank account withdrawal services.
Fortunately, they allow users to buy cryptocurrencies using their credit cards and then trade them on different platforms in any currencies they want.
Is Binance Legal in New Zealand?
Yes, the Binance exchange operates legally in New Zealand.
They support peer-to-peer withdrawals and deposits, implying that it isn’t a New Zealand firm.
Moreover, Binance doesn’t demand personal details from clients who sign up using a phone number or email address for any fist-crypto pair.
The Financial Markets Authority is only involved when Binance pays a New Zealander in cryptocurrency.
But even then, it’s unclear if the FMA would approach Binance as a financial product firm or an exchange because there is no legal framework for cryptocurrency in New Zealand.
How to Sell Bitcoin in New Zealand in 2022?
You can sell your bitcoin through any reputable cryptocurrency exchange in New Zealand. There are tons of buyers on these sites who’ll buy your bitcoin. The nature of the crypto market demands that you proceed with your trades strategically. You’ll have to sell them when the prices are high.
Can Bitcoin Be Converted to New Zealand Dollars?
Yes, you can convert bitcoins to NZD. All you need to do is trade in NZD pairs.
Most famous cryptocurrencies are accessible on NZD trading pairs in most exchanges operating in New Zealand, such as Swift, Binance, Independent Reserve, CoinSpot, LocalBitcoins, and Shapeshift.
What is the Future of Cryptocurrencies in New Zealand?
With the Central Bank and the Reserve Bank of New Zealand demonstrating a positive attitude toward Cryptocurrency, the future of these new currencies is seemingly bright.
Currently, the RBNZ is collaborating with New Zealand banks and exchanges to keep an eye on any mischievous activities in the cryptocurrency industry. The banks and exchange platforms are needed to supervise all cryptocurrencies more intensively than before.
It is safe to say that cryptocurrencies will soon be accepted as a dominant means of global payments. They’ll be used to buy products from stores or services on social media platforms like Facebook—crypto payments are already applicable in MetaVerse.
Are Cryptocurrencies Taxable in New Zealand?
Cryptocurrencies are not taxed in New Zealand. At least not yet.
Most Kiwis are curious whether their cryptocurrency transactions get taxed. Since cryptos have no inherent value, converse to real money, the government treats them as assets rather than currency, so they are not taxed. They are classified as commodities and not cash or legal tender.
The crypto industry is not obligated to adhere to the Inland Revenue Act, which regulates forex transactions in New Zealand.
Revenue earned from cryptocurrency transactions, on the other hand, is taxed based on their nature. For example, the net profit will be treated as business revenue if you use cryptocurrencies for business purposes. On the other hand, if the cryptocurrency transactions are for personal purposes, the profits or losses realised from the transaction will be taxed as a capital transaction.
Is Cryptocurrency Prohibited in New Zealand?
The use of Cryptocurrency is not prohibited in New Zealand.
While stringent currency control was initially enforced to prevent a banking crisis, the New Zealand government has never termed cryptocurrencies illegal.
Although central banks and various government officials have warned their citizens against investing in cryptocurrencies, the warnings are genuinely directed to individuals who invest a fortune before grasping the concepts in this industry. Unlike stocks or minerals, cryptocurrencies lack a reliable market value, making it difficult to project the price precisely.
Is Trading in Cryptocurrency Legal in New Zealand?
Yes, it’s legal to trade Cryptocurrency in New Zealand.
However, there are significant risks with trading cryptocurrency, so it’s vital to be aware of them before proceeding. Even so, there are considerable risks involved in cryptocurrency trading. Therefore, it’s critical to do your due diligence before investing. Here are some of the most common risks involved in cryptocurrency trading:
- Lack of regulations
- High volatility
- Cyber risks
- Tax-based concerns
- Market risks
Is Investing in Cryptocurrency Legal in New Zealand?
Investing in cryptocurrencies is legal in New Zealand. However, the government has not provided regulations to guide cryptocurrency transactions.
There are loads of cryptocurrency concepts to grasp, but you can tap into its endless opportunities once you understand the fundamental principles. That industry is still new, but it’s here to stay, judging from its wide acceptance.
Is Mining Cryptocurrency Legal in New Zealand?
However, while cryptocurrencies are allowed in New Zealand, there are minimal restrictions. You could get legal redress if anything terrible happens. If you offer cryptocurrency services in New Zealand, you’ll be subjected to current NZ regulations.
Is Cryptocurrency Exchange Accepted in New Zealand?
Yes, cryptocurrency trading is permitted in New Zealand. However, mining is prohibited since it is categorised as an energy-intensive activity.
While trading crypto, you should be very careful since they are unpredictable assets.
It’s encouraging to learn that New Zealand is at the forefront of crypto legislation. Technological advancement has caused quite a stir in recent times, and it will be fascinating to watch the response from the governments as they strive to keep up with the endless stream of invention and development.
With these rapidly-changing changes, we hope our legislators can stay up and guarantee that we keep benefiting from the incredible, evolving digital currencies.
Nevertheless, ensure you perform your evaluations and only invest in currencies that suit you.