New Tax Rules for Your Crypto Trades

The crypto freedom era may be ending, at least when it comes to tax privacy.

A new global reporting standard, the Crypto‑Asset Reporting Framework (CARF), comes into effect on 1 April 2026 — and will bring major transparency to previously opaque crypto trading across borders.

What is changing

The new rules fall under the Crypto Asset Reporting Framework, a global initiative aimed at reducing tax evasion and improving transparency. Under this framework:

• Crypto exchanges must collect verified identity information from users.

• They will be required to report details of trades, swaps, and certain wallet transfers.

• Offshore platforms will report activity for New Zealand residents, not just trades made on local exchanges.

• Tax authorities around the world will exchange this information on a regular basis.

In simple terms, crypto activity will be treated more like traditional financial transactions, with clear reporting obligations.

Why it matters for Kiwis?

In the most recent reporting period, around one hundred and eighty eight thousand New Zealanders traded approximately $7.2 billion dollars worth of crypto through local exchanges. A small number of traders accounted for the majority of this volume, and regulators have already increased their focus on high value activity.

With the new rules in place, Inland Revenue will gain a clearer picture of crypto movements, both locally and offshore. This will make it much easier for them to identify undeclared income and match transactions against tax returns.

If you are an investors, what do you need to do?

These changes do not introduce new taxes, but they will increase the need for accurate record-keeping.

If you trade or hold crypto, it is important to:

• Keep clear records of every transaction, including dates and values.

• Understand that buying, selling, and swapping crypto can create taxable events.

• Track any losses, as these may be able to offset gains.

• Review your past activity to ensure your tax position is correct.

• Plan ahead so you are ready when the new rules take effect.

For many investors, the biggest impact will be the requirement to show evidence of past transactions, especially if records were not kept at the time.

How we can help?

The introduction of global crypto reporting marks a new era of transparency. Preparing early will help avoid any unexpected tax outcomes once the rules are fully in place.

If you would like support reviewing your crypto activity or understanding how these changes may affect you, our team at Kinghans is here to help. We can work through your position, update your records, and make sure you are confident heading into the new reporting environment.