New Zealand adopts OECD’s Crypto Asset Reporting Framework (CARF)

The New Zealand government has introduced legislation to adopt the Organisation for Economic Co-operation and Development (OECD)’s Crypto Asset Reporting Framework (CARF), aiming to enhance transparency in the crypto market.

The bill, presented on August 26 by the New Zealand Revenue Minister, proposes amendments to the Common Reporting Standards and introduces CARF into the country’s tax regulations.

The proposed amendments are set to take effect on April 1, 2026, with New Zealand-based crypto-asset service providers (CASPs) required to collect and report data on transactions involving reportable users.

CASPs will need to submit this information to the Inland Revenue Service by June 30, 2027, ensuring compliance with the new reporting standards.

The bill seeks to integrate CARF into New Zealand’s Tax Administration Act of 1994, with additional amendments proposed to facilitate the interpretation and application of the framework within the country's tax system.

Under the new regulations, CASPs are obligated to adhere to CARF’s self-certification procedures, due diligence requirements, and maintain comprehensive records of transactions.

The legislation also outlines penalties for non-compliance by CASPs and crypto asset users, with specific fines for failing to meet the reporting requirements.

CASPs that do not comply with CARF’s reporting standards could face fines of approximately $187.12 (NZD$300) per infraction, with a maximum annual penalty of NZD$6,237 under the proposed new section 142L(5)(a).

Additionally, crypto asset users who fail to provide necessary information to CASPs could be fined $623, further reinforcing the importance of compliance.

The implementation of CARF reflects New Zealand’s commitment to aligning with international standards in the regulation of crypto assets, aiming to prevent tax evasion and increase market transparency.

The proposed measures are part of a broader effort to ensure that New Zealand’s tax system remains robust in the face of evolving financial technologies and practices.

By adopting CARF, New Zealand joins other countries in the global initiative to regulate crypto assets more effectively, reducing the risk of illicit financial activities.

The government’s proactive approach is designed to protect the integrity of the financial system while ensuring that crypto asset activities are appropriately reported and taxed.