Cryptocurrency activity in New Zealand 2021
Doing cryptocurrency business in New Zealand is relevant because the country is leading in terms of the ease of opening a company. Residents and non-residents can open their own businesses. The tax system is considered one of the most loyal, and there are no restrictions on transactions with cryptocurrencies.
How activities are regulated
There is no special law in the jurisdiction that regulates business related to cryptocurrency. However, conducting cryptoactivities in New Zealand in 2021 is becoming popular, and the country's tax office considers such assets as property that does not have the means of payment.
Regulated transactions that amount to financial services - the operation of exchanges and operations of brokers, ICOs. Exchanges that trade assets (financial products) must obtain a special license.
Before opening a cryptocurrency company in New Zealand, you need to familiarize yourself with the requirements for service providers. In addition to registration, providers need to comply with integrity provisions. The AML should be complied with. When suspicious transactions are detected, customer identities must be verified and money laundering transactions must be identified and reported. Reporting and auditing are required.
If a person has tax residency status, taxation changes. If a person is a resident, fees are paid on all income, including that received from another country. If not, a levy is paid only on income from assets derived from a source in New Zealand.
The rate of tax can vary depending on the indicators of income. It can be equal to 10.5%, 17.5%, 30-39%. The corporate tax rate is 28%. Tax on income from transactions can be applied if the currency was purchased for resale and assets were purchased for profit.
How to get a license
Licensing is subject to activities under which counterparties provide services related to currency to clients. A separate document - a license for the exchange of cryptocurrencies can not be obtained, but there is a single certificate for the clearance of brokers.
The main requirements are:
- Opening an exchange;
- Availability of an office in the jurisdiction;
- Compliance with the law on markets;
- Timely payment of taxes.
Before issuing the document FMA checks what services will be provided, what members are assumed, and what regulatory tools the company uses.
The firm must actually be located in New Zealand. It is necessary to provide information about the services to be rendered, the structure of the corporation, and all the beneficiaries. You can ask our specialists at IT-OFFSHORE for more details on the nuances of setting up a company.