A New Zealand minister has proposed a new crypto reporting framework for the country, which is along the lines of the regulations of the OECD countries last year.
In 2023, the group of ‘Organization for Economic Co-operation and Development (OECD)’ countries adopted a crypto reporting framework. Months later, the Minister of Revenue in New Zealand proposed implementing this framework in the country. The framework, meant for crypto service providers, will bring in new regulatory rules.
Simon Watts, the minister, introduced the framework in the form of a crypto regulatory bill. Meanwhile, the crypto regulatory bill introduces new tax reporting and relief measures for industry firms. Crypto service providers would have to follow these rules once the bill receives the necessary approvals.
Describing crypto assets, the official text of the bill described crypto-assets as digital depictions of value with several use cases. The bill also noted that Instead of relying on a financial institution to verify transactions, computers operating on the crypto-assets network verify transactions. It defined it as distributed ledger technology, and blockchain as a form of it.
It added that the crypto service providers would need to provide information on transactions to tax authorities. Failure to comply with the new bill rules will also attract penalties. From an investor’s perspective, the new crypto regulatory rules could be a good measure to prevent instances of fraud.
Transparent reporting helps investors make better decisions by providing them with accurate, timely information about the activities of service providers. This can increasingly contribute to a more stable and resilient crypto market. This bill in New Zealand could possibly work in this same direction.
Moreover, by adhering to reporting frameworks, service providers can proactively identify and mitigate potential risks. Compliance with regulations can help protect their businesses from legal and reputational damage.
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