Overview
New Zealand has no dedicated crypto-asset licensing regime. VASPs are regulated by the intersection of three frameworks: FSP Registration under the Financial Service Providers (Registration and Dispute Resolution) Act 2008, AML/CFT supervision under the AML/CFT Act 2009 (DIA), and the Financial Markets Conduct Act 2013 (FMA) where a token meets the definition of a financial product. Pure exchange tokens like BTC and ETH are generally not financial products; tokenised funds, derivatives and certain advice triggers do bring an FMA licence into play.
The base path. FSP plus AML/CFT, runs in 3 to 5 months with no statutory minimum capital. From 1 April 2026 the OECD Crypto-Asset Reporting Framework adds a data-collection obligation, with first reports due to Inland Revenue by 30 June 2027.
Cryptoassets themselves are legal property in New Zealand. The High Court confirmed in Ruscoe v Cryptopia Ltd (in liquidation) [2020] NZHC 728 that cryptocurrencies satisfy the four Ainsworth criteria for property, a ruling that now anchors custody, trust and insolvency analysis for every NZ crypto business.
Regulators
DIA (Department of Internal Affairs, Anti-Money Laundering Group) is the AML/CFT supervisor for most VASPs. FMA (Financial Markets Authority) is the financial-markets conduct regulator and licenses derivatives issuers, MIS managers and financial advice providers. Companies Office (within MBIE) operates the Financial Service Providers Register. RBNZ is the prudential regulator for banks and NBDTs and is consulted on broader policy. The AML/CFT Act portal (Ministry of Justice) hosts the statute and regulations, and Inland Revenue (IRD) administers corporate tax, GST and CARF reporting.
Track 1. FSP Registration
Mandatory under the FSP Act 2008 for any person in the business of providing a financial service. VASPs typically register under the financial services operating a value transfer service, issuing and managing means of payment, changing foreign currency, and/or keeping, investing, administering, or managing money, securities or investment portfolios on behalf of other persons.
Membership of an approved Dispute Resolution Scheme (FSCL, FDRS, IFSO, or Banking Ombudsman) is mandatory if retail-facing. At least one NZ-resident director (or Australian-resident director who is also a director of an Australian-incorporated company) is required at corporate level under Companies Act 1993 s.10(d), the FSP Act 2008 itself does not impose a separate director residency test, but residency anchors via Companies Act registration as a precondition to FSPR.
DBS test and the genuine NZ-connection requirement
Since 2014 the Registrar has applied the destination-based services (DBS) test under section 18 of the FSP Act 2008 to block sham FSPR registrations by offshore operators seeking a New Zealand "wrapper". To hold a live registration the business must demonstrate a genuine connection to New Zealand consumers or to operations located in New Zealand, a mailbox and a nominee director are not enough. In practice we document NZ-based operational staff, NZ-resident compliance leadership, NZ-hosted infrastructure where possible, and NZ customer-service hours. A failed DBS test leads to direction of deregistration; a well-papered application is usually decided on the written record without a hearing.
Track 2. AML/CFT Act 2009 (DIA supervision)
FMA, RBNZ and DIA have publicly confirmed most VASPs (exchanges, brokers, custody providers, token issuers) are reporting entities under the AML/CFT Act 2009. Obligations include:
- Risk assessment and AML/CFT programme.
- Customer due diligence, standard and enhanced.
- Ongoing transaction monitoring.
- Prescribed Transaction Reports (PTR) and Suspicious Activity Reports (SAR).
- Annual AML/CFT report to DIA.
- Biennial independent audit of the AML/CFT programme.
The Travel Rule has been in force since 1 July 2020. Virtual-asset transfers at or above NZD 1,000 must carry prescribed originator and beneficiary information, and DIA sector guidance sets expectations for VASP-to-VASP information sharing and sanctions screening at the protocol boundary.
Track 3. Financial Markets Conduct Act 2013 (only if token = financial product)
A token is a "financial product" under the FMCA if it meets the definition of equity security, debt security, managed investment product, or derivative. Pure exchange tokens are generally outside scope. Where the FMCA bites, a case-specific FMA licence is required:
- Derivatives issuer licence, for crypto-derivative platforms serving retail.
- Managed Investment Scheme (MIS) licence, for tokenised funds.
- Financial Advice Provider (FAP) licence, for crypto advice.
Even when no FMA licence is triggered, the fair-dealing provisions of Part 2 FMCA apply universally. Websites, token white papers, social media and paid ads must not be misleading, deceptive, or contain unsubstantiated claims, the FMA has repeatedly used Part 2 against unlicensed crypto promoters without needing to litigate the financial-product question.
Financial-product test, how the FMA classifies a token
Whether a token is a financial product under the FMC Act 2013 determines whether an FMA licence and Product Disclosure Statement are required. The FMA analysis follows four statutory categories.
| Category | FMCA test | Typical crypto example | FMA licence triggered |
|---|---|---|---|
| Debt security | Right to be repaid money or paid interest | Fiat-redeemable stablecoins; tokenised notes | Licensed supervisor; PDS |
| Equity security | Share or interest in a body (NZ or offshore) | Security tokens representing company shares | PDS; issuer obligations |
| Managed investment product | Pooled contributions; right to a financial benefit | Tokenised funds; yield/index baskets | MIS manager licence + supervisor |
| Derivative | Amount derived from the value of something else | Crypto CFDs, perps, options for NZ retail | Derivatives issuer licence + PDS |
Pure exchange tokens (BTC, ETH, LTC, most L1 governance tokens) fall outside all four categories and require no FMA licence, only FSPR plus AML/CFT. Asset-backed and utility tokens are analysed case by case against the same tests.
Stablecoins and the NZDD ruling
Stablecoins are classified token-by-token. A fiat-backed design that promises redemption at par is typically a debt security; a yield-bearing basket is more likely a managed investment product; a pure algorithmic design usually falls outside the FMCA but remains AML/CFT reporting-entity activity for the issuer and distributors.
On 11 March 2026 the FMA issued a designation declaring NZDD (a NZ-dollar-denominated stablecoin) a payment mechanism rather than a financial product, the first FMA designation of its kind. The effect is that NZDD is not caught by FMCA disclosure obligations; it remains squarely within the AML/CFT Act and the Commerce Commission's Retail Payment System Act 2022 supervisory perimeter. For other stablecoins the default assumption is still case-by-case FMCA analysis, the NZDD designation is specific, not a class exemption.
CARF / OECD reporting (2026–2027)
Under New Zealand's adoption of the OECD Crypto-Asset Reporting Framework, CASPs must collect user transaction data from 1 April 2026 and file reports to Inland Revenue by 30 June 2027. Build the data-collection workflow into FSPR registration from day one, retrofitting after the fact is costlier.
High-level checklist (FSP + AML/CFT)
- NZ Limited company under the Companies Act 1993 with at least one NZ-resident director.
- Registered office in New Zealand.
- FSPR registration via the Companies Office for relevant financial services.
- Dispute Resolution Scheme membership (FSCL, FDRS, IFSO or Banking Ombudsman) if retail-facing.
- AML/CFT risk assessment and AML/CFT programme aligned with DIA expectations.
- Customer due diligence framework, standard and enhanced.
- PTR and SAR reporting workflows; annual DIA AML/CFT report.
- Biennial independent audit of the AML/CFT programme.
- CARF data-collection workflow operational from 1 April 2026.
- For financial-product activities: FMA licence application (derivatives issuer, MIS or FAP) on the parallel timeline.
Process and timeline
| Step | FSP + DIA AML only | + FMA licence |
|---|---|---|
| Entity setup, NZ-resident director appointment | 2–4 weeks | 2–4 weeks |
| AML/CFT programme drafting and risk assessment | 4–8 weeks | 4–8 weeks (parallel) |
| FSPR registration | 2–6 weeks | 2–6 weeks |
| DIA AML-CFT notification and onboarding | 2–6 weeks | 2–6 weeks |
| FMA licence application and assessment | n/a | 6–12 months |
| Total realistic | 3–5 months | 9–15 months |
Taxation
- Corporate tax: 28% flat.
- GST: 15% standard. Cryptoasset supplies are zero-rated or outside-scope under the GST Act 1985 as amended (from 1 April 2022, “cryptoassets” excluded from the definition of “services” for GST).
- No dedicated crypto tax rate. Crypto profits are ordinary income when acquired with a purpose of disposal, with full deduction of costs.
- CARF reporting from 1 April 2026; first filings due 30 June 2027.
FAQ
Is there a crypto licence in New Zealand?
No dedicated crypto licence. The combination is FSP Registration plus AML/CFT supervision under DIA, with FMA on top where tokens are financial products.
What about minimum capital?
None statutory. Economic floor is the AML/CFT programme, biennial audit, DRS membership and any FMA licence requirements.
Can I use an Australian director?
Yes, an Australian-resident director who is also a director of an Australian-incorporated company satisfies the residency requirement under Companies Act 1993 s.10(d). The FSP Act 2008 itself does not impose a separate director residency test.
How does NZ compare with Australia?
Australia is more comprehensive in 2026. DCE plus Tranche-2 plus the new ASIC AFSL DAP regime. New Zealand remains lighter, faster and cheaper for non-financial-product crypto activities.
When does the CARF rule start?
1 April 2026 for data collection; 30 June 2027 for first reports to Inland Revenue.
What is the FSP registration process and DBS test?
FSPR applications are filed through the Companies Office portal, select the financial services, certify directors and senior managers, attach the AML/CFT programme summary and prove DRS membership. The Registrar applies the destination-based services (DBS) test to block sham registrations; the business must have a genuine NZ connection, otherwise deregistration can be directed under s.18 FSP Act 2008.
When is an FMA licence actually required?
Only when the token or service meets the FMCA 2013 definition of a financial product, equity, debt, managed investment product or derivative, or when a regulated financial service is offered. That triggers a derivatives issuer, MIS manager or Financial Advice Provider licence. Pure spot BTC/ETH exchange is generally outside the FMCA.
What AML/CFT Act obligations apply to VASPs?
Written risk assessment, AML/CFT programme under ss.56–58, AML Compliance Officer, standard and enhanced CDD, ongoing monitoring, PTR and SAR reporting, annual AML/CFT report to DIA, and an independent audit every two years (or as directed).
Who supervises crypto exchanges. FMA or DIA?
DIA is the AML/CFT supervisor for most VASPs including exchanges, brokers, custody providers and token issuers. The FMA supervises conduct only where the product is a financial product under the FMCA 2013.
Does NZ apply the FATF Travel Rule?
Yes, the AML/CFT (Requirements and Compliance) Regulations were amended to implement the Travel Rule from 1 July 2020. Originator and beneficiary information must accompany wire and virtual-asset transfers above prescribed thresholds, and DIA has published sector guidance on VASP-to-VASP information sharing.
How is crypto trading income taxed for businesses?
No separate crypto tax rate. Corporate profits from crypto trading are taxed at 28% as ordinary income when the asset was acquired with a purpose of disposal. IRD's default position for active traders. Acquisition, network fees and directly attributable operating costs are fully deductible.
Is GST charged on crypto services?
Since 1 April 2022 the GST Act 1985 excludes cryptoassets from the definition of services, supplies of cryptoassets are outside-scope or zero-rated. Related taxable services with separate consideration (platform fees, custody fees, advisory fees to NZ residents) remain subject to 15% GST.
What custody standards apply in NZ?
No dedicated crypto-custody statute. Custody is governed by general law, trustee and fiduciary duties, contractual terms, the AML/CFT Act (custodians are reporting entities) and, where the custodied asset is a financial product, FMCA custodian obligations (segregation, reconciliation). FMA good-practice guidance on custodians is the working benchmark.
How are stablecoins treated, and what is RBNZ's position?
Stablecoins are assessed case-by-case under the FMCA, fiat-backed designs may be debt securities or managed investment products; algorithmic designs usually fall outside the FMCA but remain AML/CFT reporting-entity activity. RBNZ has published Digital Cash consultation and a CBDC prototype update but has not issued a dedicated private-stablecoin regime; no 2026 rollout.
Can NZ crypto businesses open bank accounts?
Banking is the hardest step, major NZ banks apply strict de-risking to VASPs. A clean FSPR registration, DIA AML/CFT onboarding, documented source-of-funds framework and NZ-resident directors materially improve acceptance. Smaller banks and fintech-friendly EMIs, plus offshore EMI bridges, are commonly used during the application period.
What did the FATF mutual evaluation find on NZ?
NZ's FATF mutual evaluation and follow-up reports rated the country largely compliant, with remaining work on beneficial-ownership transparency and VASP supervisory intensity. The 2020–2022 Travel Rule amendments and DIA sector guidance addressed the main Recommendation 15 gaps. NZ is not on any FATF grey list.
Is cryptocurrency legal property in New Zealand?
Yes. In Ruscoe v Cryptopia Ltd (in liquidation) [2020] NZHC 728 the High Court held that cryptocurrencies satisfy the four Ainsworth criteria for property under NZ law, they are definable, identifiable by third parties, capable of assumption by third parties, and have some degree of permanence. The ruling is the foundation for custody, trust-account and insolvency analysis of crypto in New Zealand.
What did the FMA rule about NZDD on 11 March 2026?
The FMA issued a designation declaring the NZDD stablecoin a payment mechanism rather than a financial product, meaning it is not caught by FMCA disclosure obligations. NZDD remains within the AML/CFT Act and the Retail Payment System Act 2022 perimeter. The designation is specific to NZDD; other stablecoins continue to be analysed case-by-case against the debt-security and managed-investment-product tests.
What is the Travel Rule threshold in NZ?
Virtual-asset transfers at or above NZD 1,000 must carry prescribed originator and beneficiary information under the AML/CFT (Requirements and Compliance) Regulations, amended with effect from 1 July 2020. DIA sector guidance governs VASP-to-VASP information sharing and sanctions screening at the protocol boundary.
Do fair-dealing rules apply even without an FMA licence?
Yes. Part 2 FMCA fair-dealing provisions apply to all crypto marketing, white papers, websites and social media, whether or not the token is a financial product and whether or not an FMA licence is held. The FMA has repeatedly used Part 2 against unlicensed crypto promoters without needing to decide the financial-product question.
What disclosure and reporting does the FMA expect?
For FMA-licensed entities: Product Disclosure Statements and register entries for regulated offers, periodic FMA reporting, breach notifications under licence conditions, audited financial statements, and ongoing fit-and-proper certifications for directors and senior managers. Unlicensed VASPs file FSPR annual confirmations with the Companies Office and AML/CFT annual reports with DIA.