Crypto Adoption Around The World: New Zealand

Current State of Crypto Adoption in New Zealand

Source: Freepik

With traditional paths to financial security becoming increasingly out of reach, many Kiwis are turning to cryptocurrencies as a promising alternative. This trend is evident as many Kiwis are turning to digital assets as a viable alternative to build wealth and achieve financial independence.

A new survey [conducted by Protocol Theory]{.underline}, in collaboration with Easy Crypto, New Zealand’s leading cryptocurrency exchange, sheds light on this growing trend. According to the findings, nearly half of New Zealanders have either already invested in cryptocurrencies or are seriously considering doing so in the future.

The survey indicates that [around 50%]{.underline} of New Zealanders have owned, currently own, or plan to invest in crypto in the near future. This trend highlights a significant shift in investment preferences, as more people become dissatisfied with conventional financial systems.

One of the main attractions of cryptocurrency for New Zealanders is its potential to reduce profits for traditional financial institutions. About 33% of respondents expressed that investing in crypto offers a way to minimize the influence of banks and corporations.

This influence is often seen as a barrier to their financial independence. Interestingly, 60% of survey participants believe they can make small, incremental investments in cryptocurrency over time, compared to only 16% who feel the same about real estate.

This perception points to the lower entry barriers in crypto investments, making it an appealing option for those who may find property ownership out of reach. 

Recent market projections show that the number of crypto users in New Zealand reached nearly 1.94 million in 2025, with projections indicating this will stabilize at approximately 1.84 million by 2026. The user penetration rate stood at 36.68% in 2024 and is expected to reach 36.57% in 2025, reflecting one of the highest adoption rates globally.

Amid this surge in crypto interest, the Reserve Bank of New Zealand has been actively progressing its consultation on the development of a Central Bank Digital Currency (CBDC), referred to as “Digital Cash”. 

Following a major consultation that concluded in December 2024 and received over 18,000 responses, which is the highest response rate to any RBNZ consultation ever, the central bank is now in Stage 2 of its development process.

The proposed digital currency would be exchangeable with physical cash, bank deposits, and other financial assets. However, unlike traditional currencies, the Reserve Bank would not issue the CBDC directly to consumers.

Instead, private sector players like banks and payment service providers would manage their distribution and offer related services. The CBDC aims to integrate features like smart contracts, enabling programmable payments and automated transactions.

For instance, a business owner in New Zealand could use a digital account to set up smart contract-based payments. This includes releasing funds only after specific conditions are met, such as the fulfillment of an order.

The RBNZ’s Stage 2 process, which includes further engagement, design and technical work, policy development, and a cost-benefit analysis, is expected to be completed in 2026. 

If the government decides to proceed, Stage 3 would involve developing and testing prototypes between 2028 and 2029, with a potential introduction of Digital Cash around 2030. 

However, the December 2024 consultation revealed significant public concerns, with more than 90% of respondents worried about government control and over 80% concerned that a CBDC would replace physical cash.

On July 17, 2025, New Zealand announced a nationwide ban on cryptocurrency ATMs, in effect. The decision, spearheaded by Associate Justice Minister Nicole McKee as part of sweeping Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) reforms, resulted in the decommissioning of over 220 crypto ATMs that had been operating across the country.

McKee cited a case involving NZ$107 million allegedly laundered through such channels and referenced instances where crypto was used to purchase illegal drugs for import into New Zealand. 

Alongside the ATM ban, the government implemented a NZ$5,000 cap on international cash transfers to disrupt the flow of criminal funds offshore.

Despite this restriction, New Zealand charities are still allowed to accept cryptocurrencies and NFT donations. Several well-known charities, such as UNICEF New Zealand, Plunket, and HeartKids, continue to embrace this option, using third-party platforms like The Giving Block to facilitate the donation process.

Regulations Guiding The Use of Cryptocurrencies in New Zealand

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As the popularity of cryptocurrencies continues to grow in New Zealand, regulatory bodies have stepped in to provide oversight and guidelines for this emerging sector. Although cryptocurrencies are not considered legal tender in the country, the businesses and services related to them are regulated under various financial laws.

However, the country has established a regulatory framework to oversee cryptocurrency-related businesses. This includes exchanges, brokers, and Initial Coin Offering (ICO) providers, by treating them as financial services.

This regulation falls under the Financial Markets Authority (FMA) jurisdiction, which requires these businesses to obtain an FMA license to operate. Blockchain technology itself, along with the use of cryptocurrencies and NFTs, is also fully legal in New Zealand.

Although no specific regulatory system is dedicated exclusively to blockchain, several existing frameworks may apply based on the specific use case. For instance:

• Consumer Protection Laws: The Fair Trading Act 1986 and the Consumer Guarantees Act 1993 are in place to protect consumers from misleading practices and ensure fair trading.
• Financial Services Regulations: Crypto businesses must comply with the Financial Services Providers Act 2008 and the Financial Markets Conduct Act 2013. These regulations address the registration, dispute resolution, and conduct standards for financial service providers.
• Anti-Money Laundering (AML) Compliance: The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 sets out requirements for businesses to prevent financial crimes.
• Privacy Protections: The Privacy Act 2020 governs data protection standards, ensuring that businesses, including those dealing with crypto, handle personal information responsibly.

The Department of Internal Affairs (DIA) oversees AML compliance, with additional requirements for exchanges under the Financial Advisors Act. ICOs are evaluated individually to identify the appropriate regulatory framework.

Furthermore, businesses offering ICOs that classify their tokens as financial products must register with the Financial Service Providers Register. They must also comply with AML regulations and adhere to fair dealing rules, which prohibit misleading advertising and deceptive practices.

In a significant development for New Zealand’s fintech ecosystem, the FMA launched a pilot “regulatory sandbox” in January 2025 and ran it through July 2025. 

This initiative allowed fintech companies, including blockchain and crypto corporations, to test innovative products and services under regulatory supervision in a controlled environment. The sandbox was open to both regulated financial services and unregulated areas such as compliance tools, blockchain solutions, and regulatory technologies. 

In April 2025, the FMA announced six fintech firms selected from 24 applications to participate in the pilot. Following the pilot’s conclusion, the FMA will decide whether to establish a permanent regulatory sandbox to support ongoing financial innovation in New Zealand.

Taxation of Crypto in New Zealand

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New Zealand’s approach to taxing cryptocurrencies is still developing, as there is no dedicated legal framework for crypto tax at the moment. However, the Inland Revenue Department (IRD) has provided some guidance on how crypto assets are treated under the current tax system.

Rather than being classified as currency, crypto assets are considered personal property for tax purposes. For tax purposes, cryptocurrency is subject to Income Tax rather than a specific Capital Gains Tax.

This means profits from trading or disposing of crypto assets are taxed at your marginal income tax rate, which can be as high as 39%, depending on your total annual income.

The Taxation (Annual Rates for 2021-22, GST, and Remedial Matters) Act 2022 classifies the trading of crypto assets as a “financial service.” This makes it an exempt supply under the Goods and Services Tax (GST) Act 1985.

The following scenarios are considered taxable disposals of crypto:

• Selling cryptocurrency for New Zealand Dollars (NZD) or any other fiat currency.
• Trading one cryptocurrency for another.
• Spending cryptocurrency on goods or services.
• Gifting cryptocurrency to another person.
• Lending cryptocurrency, particularly if you no longer hold beneficial ownership or receive a token in exchange for representing your loaned asset.

In addition, acquiring crypto can also trigger taxable events. The IRD notes that mining rewards and certain types of airdrops are subject to Income Tax.

As part of ongoing efforts to regulate the crypto-asset industry, the New Zealand Government introduced the Taxation Billin August 2024, which was enacted as the Taxation Act 2025. This legislation includes transformative changes for the crypto industry.

A key provision is the adoption of the OECD’s Crypto-Asset Reporting Framework (CARF). The OECD framework is aimed at increasing transparency in crypto-asset transactions by requiring service providers to report transaction details to tax authorities.

Starting April 1, 2026, New Zealand-based Reporting Crypto-Asset Service Providers (RCASPs) must collect information on certain transactions made by reportable users. 

These providers are then required to report this information to the Inland Revenue by June 30, 2027. The first international exchange of information with other CARF-participating countries will occur by September 30, 2027.

The CARF captures three key transaction types:

• Crypto-to-local-currency exchanges: Converting crypto into New Zealand dollars or NZD into crypto triggers a report.
• Crypto-to-crypto trades: Swapping one digital asset for another (for example, Ethereum for a stablecoin) gets captured too.
• Significant transfers: Moving crypto assets from one wallet to another.

Service providers, including exchanges, brokers, and crypto wallet operators, will collect users’ names, addresses, dates of birth, and tax identification numbers, then report transaction data. That information flows to the IRD, then to tax authorities in other CARF countries. Meanwhile, New Zealand receives data on foreign investors using local platforms.

RCASPs that fail to comply with CARF requirements face fines of NZ$300 per instance, capped at NZ$10,000. However, if service providers do not take “reasonable care” to meet CARF obligations, penalties range from NZ$20,000 to NZ$100,000. Individual users who fail to provide the necessary information could face a NZ$1,000 fine.

According to a recent IRD report, 188,000 New Zealanders traded NZ$7.2 billion in cryptocurrencies through local exchanges alone between June 2024 and June 2025, with the market highly concentrated. The IRD’s regulatory impact statement estimates that CARF could generate approximately $50 million in additional annual tax revenue for New Zealand.

These changes will require crypto providers to update their policies, adopt new procedures, and ensure compliance with due diligence and reporting standards. With 80% of cryptocurrency transactions by New Zealanders occurring on overseas trading platforms, CARF will close a major gap in global tax transparency for crypto.

Factors Driving Crypto Adoption in New Zealand

New Zealand has witnessed a notable increase in interest in cryptocurrencies, driven by various factors that shape the future of crypto adoption and investment in the country.

The country has seen a shift in financial preferences, with more people considering digital assets as an attractive option for future investment.

Here’s a closer look at the key factors fueling this growing interest in crypto investment.

The Desire for Financial Freedom

One of the primary reasons Kiwis are drawn to crypto is its accessibility. For many, investing in real estate or traditional assets requires significant upfront capital, whereas crypto allows incremental investments.

With several platforms now available, people can start with relatively small amounts, making it a more feasible entry point for those with limited resources.

Cryptocurrencies offer a flexible approach to investing, letting individuals manage their portfolios directly, diversify easily, and grow their investments over time.

Dissatisfaction with Traditional Financial Systems

A growing number of Kiwis are dissatisfied with traditional financial institutions, such as banks and even the government. Some see these entities as profit-driven, with little regard for individuals’ financial well-being.

For example, a survey by Protocol Theory and Easy Crypto revealed that 33% of crypto investors in New Zealand are motivated by a desire to bypass banks. They are also looking to minimize the profits that banks and corporations make from traditional financial transactions.

This sentiment highlights the appeal of cryptocurrencies, which operate outside the control of central authorities, offering users more control over their financial futures.

Accessibility and Lower Barriers to Entry

Compared to the real estate market, cryptocurrencies present much lower barriers to entry. The ability to invest small, incremental amounts in crypto assets, as opposed to having to commit large sums of money for property purchases, makes crypto more accessible.

In fact, 60% of New Zealanders in a recent survey indicated they would feel more comfortable investing small amounts in cryptocurrencies. This easy entry, combined with the flexibility to trade and transact as needed, has contributed to the adoption of crypto in the country.

The Promise of High Returns

Cryptocurrencies, especially popular ones like Bitcoin and Ethereum, have shown significant potential for high returns. Despite the volatile nature of the market, many investors see the potential for substantial gains, particularly with the long-term growth of digital assets.

As the value of cryptocurrencies fluctuates, investors may see opportunities for profits through careful buying and selling strategies. The appeal of these high returns has led many to view crypto as a viable investment asset, with the hope that early investment will pay off handsomely in the future.

Rising Institutional Involvement

Institutional investment is another factor contributing to the growth of crypto adoption. Large organizations and investors are increasingly exploring digital assets, driving up the market value and bringing greater mainstream attention to the space.

New Zealand has not been immune to this trend. As larger institutional players begin to make moves in the crypto market, individual investors in New Zealand feel more confident in participating. 

Current Usage of Crypto in New Zealand

Source: Freepik

Cryptocurrency usage in New Zealand has steadily gained traction, with people and businesses exploring various applications beyond investment. These include:

Cryptocurrencies as a Payment Method

Although not yet widespread, a growing number of New Zealand businesses have begun accepting cryptocurrency as a valid payment option. Companies like Easy Crypto make it easier for Kiwis to buy, sell, and exchange cryptocurrencies.

Some New Zealand businesses, such as Irepair and Freshstore, accept Bitcoin. This reflects an increasing willingness to integrate crypto into everyday commerce.

These payment options give consumers flexibility and encourage the practical use of cryptocurrencies for goods and services.

Investment Diversification

Investment in cryptocurrency remains one of the most common uses in New Zealand. More New Zealanders are diversifying their investment portfolios by including cryptocurrencies like Bitcoin and Ethereum.

According to survey data, about 50% of New Zealanders either own cryptocurrency or are considering investing in the future, with Bitcoin being the most popular choice. Digital currencies have gained a reputation as high-risk, high-reward assets, making them appealing to younger investors.

NFTs and Digital Art

Non-fungible tokens (NFTs), a unique form of crypto asset, have gained popularity in New Zealand’s creative sector. Digital artists and musicians are beginning to explore NFTs as a way to sell artwork and music directly to fans, cutting out intermediaries.

NFTs also offer artists a new revenue stream through royalties on secondary sales, a feature that traditional art markets cannot provide.

Examples of NFT use in New Zealand include the Rhythm and Vines music festival, which utilizes collectible NFTs to provide verified access to exclusive event experiences. Another example is Voxel, an early metaverse platform pioneering virtual worlds in the region.

Charitable Donations and Crowdfunding

Cryptocurrencies are also becoming a popular way for New Zealanders to contribute to charitable causes. The transparency and traceability of blockchain transactions make crypto donations an appealing option for both donors and organizations.

For instance, charities like UNICEF New Zealand and Whānau Āwhina Plunket accept Bitcoin and Ethereum donations. This allows for greater flexibility in how people choose to give.

Challenges to Crypto Adoption in New Zealand

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Despite the growing interest in cryptocurrencies, several factors hinder widespread adoption in New Zealand.

The challenges range from a lack of understanding and educational resources to regulatory uncertainties and concerns about security.

They include:

Regulatory Uncertainty and Evolving Framework

While New Zealand has taken significant steps in 2025 to enhance its regulatory framework for digital assets, the landscape remains in flux. The July 2025 crypto ATM ban and the NZ$5,000 cap on international cash transfers represent major policy shifts aimed at combating money laundering and financial crime.

The introduction of CARF from April 2026, the FMA’s regulatory sandbox pilot, and ongoing CBDC consultations signal that New Zealand is actively shaping its approach to crypto regulation. However, this evolving regulatory environment creates uncertainty for new investors and companies trying to understand their obligations and rights.

According to a survey conducted by the FMA, about 50% of respondents expressed support for regulations that would govern how crypto providers conduct themselves, indicating public demand for clearer frameworks.

Lack of Education And Accessibility

Another major challenge is a lack of knowledge and accessibility. Cryptocurrency and blockchain technology are often seen as complex and challenging to understand.

This is a barrier for many potential investors who are unsure where to start. Additionally, these potential investors do not know how to make informed decisions or even what terminology like “blockchain” and “DeFi” means.

The same FMA survey found that 72% of respondents who haven’t invested in crypto attribute their hesitance to a lack of understanding. This emphasizes the need for better educational resources.

Efforts to bridge the knowledge gap are growing, with some local organizations like BlockchainNZ hosting events to explain the fundamentals of blockchain technology. However, these educational initiatives often don’t reach the average person.

Security Risks and Scams

Cryptocurrencies have been linked to some security concerns, including fraud, hacking, and scams. Unfortunately, New Zealand is not immune to these issues.

Several scams have led to significant financial losses in New Zealand and globally.

The risks involved in digital asset ownership may deter potential users who feel unsure of their ability to protect their assets in such an environment. The FMA has been actively releasing warnings against crypto scams in the region and providing tips for safe investment practices.

Market Volatility and Lack of Trust

The volatility of cryptocurrencies is a well-known deterrent to broader adoption. Unlike traditional assets, crypto prices can swing wildly within a short period, creating a challenging environment for investors seeking stable returns.

This price unpredictability is intimidating for new investors and may deter individuals who seek less risky, more predictable investments.

In addition, the absence of an institutional safety net or protections can make investors wary.

Banking Access Challenges

New Zealand’s crypto industry faces ongoing challenges with banking access, a phenomenon known as “debanking.” 

Many crypto businesses struggle to maintain stable banking relationships, with traditional financial institutions often applying inconsistent risk assessments. This issue has been documented in reports by Web3NZ and Callaghan Innovation, highlighting how debanking creates a chilling effect on innovation in the country’s blockchain sector.

Conclusion

Crypto adoption in New Zealand is on an upward trend, with significant developments since 2025 and is expected to follow the same trajectory in 2026, reshaping the landscape. The market now includes nearly 1.94 million crypto users with a penetration rate exceeding 36%, placing New Zealand among the global leaders in digital asset adoption.

Despite its growing popularity, the sector faces evolving challenges and opportunities. 

The July 2025 nationwide ban on crypto ATMs and the NZ$5,000 cap on international cash transfers represent New Zealand’s commitment to combating financial crime while maintaining support for legitimate crypto activities. The introduction of CARF from April 2026 will dramatically increase tax transparency, with crypto service providers required to report detailed transaction information to the IRD.

If regulatory frameworks are successfully implemented and educational initiatives expanded, New Zealand has the potential to become a leader in the crypto space. 

The combination of proactive regulation, institutional support through initiatives like the regulatory sandbox, and growing public interest positions New Zealand as a jurisdiction that balances innovation with consumer protection. 

With CARF providing unprecedented tax transparency and the potential introduction of a CBDC by 2030, New Zealand is laying the groundwork for a mature, well-regulated digital asset ecosystem.