ACT Party Seeks to Unlock NZ's Digital Economy with Crypto-Friendly Tax Reforms
The Association of Consumers and Taxpayers (ACT) party in New Zealand has unveiled a proposal to modernize the treatment of digital assets, aiming to unlock their benefits and make the country a trusted home for digital finance.
As part of its campaign pledge, ACT proposes waiving capital gains tax on cryptocurrency holdings that exceed one year, benefiting individual retail investors. This move would treat long-term crypto investments as effective tools for wealth growth, rather than subjecting them to existing tax rules.
The rule change would not apply to professional traders and businesses, which would continue to be subject to the current tax regime. Additionally, small personal purchases made with cryptocurrency assets would be exempt from taxes, allowing for their use as a legitimate means of payment throughout the country.
ACT's plan also includes creating a clear regulatory framework for payment stablecoins, tokenized securities, and real-world assets, as well as establishing a sandbox for startups to test innovative products. The party aims to review current policies to determine whether crypto businesses have been unfairly excluded from New Zealand's financial infrastructure.