- New Zealand’s tax authorities dialing down on cryptocurrency users and transactions in the country.
In a statement obtained by the local radio news station, Radio New Zealand (RNZ), New Zealand-based crypto firms must submit their customer’s crypto transaction information to the country’s top taxation authority, Inland Revenue Department (IRD).
According to the report, all companies dealing with crypto assets must “pass on customers’ personal details as well as the type and value of their crypto assets.” This is in a bid for the tax authorities to keep up with the virtual asset industry and formulate a policy that will best help New Zealanders report their crypto tax obligations.
Global tax regulators are heavily hitting on the crypto asset world. Recently, the U.S. Internal Revenue Service (IRS) introduced crypto laws on its 2020 tax laws, altering form 1040 to make it harder for crypto users and traders to escape their tax obligations.
However, Janine Grainger, chief executive of Easy Crypto, a New Zealand based crypto firm, said the latest effort by the IRD goes against the fundamentals of crypto – privacy. Terming the new rules as “heartbreaking,” Grainger said she would comply but questioned the law.
“Privacy is really important to us… one of the tenets [of] cryptocurrency in general is around having freedom and autonomy and privacy,” she said.
“[..]the point of privacy isn’t to aid people who have something to hide, it’s to ensure we have a fair, open and free society”.
Russia recently introduced an amendment that would see cryptocurrency miners forego their mining rewards and a law that forces crypto traders to disclose their crypto transactions or face criminal charges.
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