ACT Party Aims to Unlock NZ's Digital Economy with Tax-Free Crypto Holdings

New Zealand's ACT Party has unveiled a six-point plan to support the country's digital economy, including a proposal for zero tax on Bitcoin and crypto gains after holding for 12 months.

The plan, titled 'Unlocking New Zealand's Digital Economy,' would exempt personal crypto holdings from income tax if they are held for longer than a year. This means that individuals who buy and hold cryptocurrencies like Bitcoin or other qualifying digital assets for at least 12 months can sell without paying taxes on their gains.

However, the policy would still apply full taxation to disposals made within 12 months, as well as business or professional trading activity. The proposal also includes provisions for low-value transaction relief and clearer regulatory treatment for stablecoins and tokenized assets.

The ACT Party is betting that its crypto-focused policy will appeal to the estimated 355,000 New Zealanders who transact in cryptocurrencies, with total transactions valued at around $36 billion.