NZ's ACT Party Seeks to Make Crypto More Attractive with Tax Breaks

The Association of Consumers and Taxpayers (ACT) party in New Zealand has proposed a new rule for digital assets as part of its campaign reform pledge. The proposal aims to modernize the treatment of cryptocurrency assets, unlocking their potential as investment tools and means of payment.

Under the proposed rule, individual retail investors who hold digital assets for over a year would be exempt from capital gains tax. Professional traders and businesses would remain subject to existing tax rules, and operations with assets held for less than a year would still be taxed.

The ACT party's plan also includes exemptions for small personal purchases made using crypto assets, allowing their use as a means of payment throughout the country.