New Zealand authorities have demanded that crypto traders start paying taxes

The total amount of transactions is estimated at NZ$7.8 billion (about $4.77 billion). In its appeal to traders, the IRD reminded that virtual assets are taxable, and if traders refuse to disclose their income in digital assets, the agency will take stricter measures.

In 2020, New Zealand updated its guidance on digital assets - they are now considered a form of property. This means that earnings from trading crypto assets are taxable. IRD official Trevor Jeffries suggested that investors should have the funds to pay the tax as the crypto market has grown significantly this year.

"The value of crypto assets has reached new heights, so now is a good time to think seriously about taxes on your activities. Investors should remember their tax obligations and consider the risks associated with non-payment. Despite the popular belief that people are invisible in blockchain, we have the tools to detect crypto asset activity," Jeffries.

The agency works with exchanges at home and abroad to gather information. The IRD is also working with other tax authorities to get more data on cryptocurrency transactions made by traders outside of New Zealand.
According to a recent survey by crypto exchange Easy Crypto, 14% of New Zealand citizens own cryptocurrencies now or have owned them in the past, and 58% of New Zealanders plan to buy