People in New Zealand view cryptocurrencies with immense interest and enthusiasm. Although the population is barely over five million here, most of them regularly buy and sell digitised currency.
Therefore, finding a reliable New Zealand crypto exchange to trade successfully in online currency is crucial. Otherwise, the risk of thefts, frauds, and overall losses is too high, and you might end up losing every bit of your investment.
Here is some information that can be extremely useful for beginners in New Zealand who wish to begin trading in cryptocurrency .
How do cryptocurrencies work in New Zealand?
The crypto market is expanding in New Zealand for many reasons. People view it as a valuable investment opportunity. But, the IRD does not consider crypto as legal tender for tax reasons and digital currency as property. In other words, the government classifies cryptocurrency as money that different businesses can accept as payment.
The cryptocurrency storage system can make it challenging for the government to regulate this kind of digitised money, as it can be hard to tell who owns what. While regulations continue to improve, specific New Zealand laws, such as the anti-money laundering law, will apply to people who offer crypto as a financial service like exchanges, broking, wallets, etc.
What is the best way to buy them?
A licensed and trustworthy New Zealand crypto exchange is the most suitable place to buy Bitcoins and other digitised currencies in the country. These platforms are highly regulated and reliable, enabling country residents to buy and sell hundreds of different currencies online with considerable ease.
The process is quite simple. Firstly, ensure that your chosen platform is aligned with the Financial Service Providers Register (FSPR). You should also seek assurance from the exchange regarding your New Zealand dollars which will be held securely in a trust account.
Know that when you sign-up on a platform in New Zealand, you will be given access to your very own personal account to store your purchased crypto. To prevent hacking and thefts, always keep your login credentials safe.
You can contact the exchange’s customer service and inquire about other details besides these to better understand the entire trading process.
Can You Use Crypto in Your Business?
The Financial Markets Authority (FMA) in New Zealand has asked citizens to exercise specific cautions when dealing with cryptocurrency. If you wish to use cryptocurrencies for your business, remember that the value of these currencies can fluctuate at any given time, making them a high-risk investment option. Secondly, crypto is not regulated yet in the country. Finally, the investors must understand that they need to protect their share from hackers and other online threats.
Consider these factors if you wish to use crypto in your business. Invariably, it would be best if you calculated the equivalent of these digitised assets into New Zealand dollars on your tax returns. Not reporting the revenue from these could lead to severe penalties. And, remember that receiving these coins as payments in exchange for goods or services will still make them taxable because it is counted as income.