Bitcoin is legal to buy, hold, and sell in New Zealand, but it remains outside the scope of a dedicated regulatory framework, according to the Financial Markets Authority (FMA). The FMA has warned that cryptocurrencies are high-risk, speculative assets, with investors potentially lacking the consumer protections available in traditional financial markets.
The Inland Revenue Department treats Bitcoin as property for tax purposes, subjecting taxable gains to income tax rates ranging from 10.5% to 39%. No separate capital gains tax system applies to crypto transactions. The Department of Internal Affairs updated anti-money laundering (AML) and counter-terrorist financing (CFT) guidance in 2026, requiring virtual asset service providers (VASPs) to comply with existing financial regulations.
Crypto exchanges operating in New Zealand, including Binance, must adhere to AML/CFT rules under current legislation. The FMA advises investors to use service providers registered on the Financial Service Providers Register (FSPR) to ensure compliance with financial market standards.
Written by Steven Cook
Regulation Desk
