New Zealand Seeks Input on Taxing Decentralized Crypto Deals

New Zealand is looking for feedback on how it taxes crypto assets and transactions, as its tax agency considers what to do about the growing use of decentralized exchanges.

Inland Revenue released an issues paper Thursday detailing its initial views on the tax consequences of increasingly common decentralized finance, or DeFi, transactions “such as wrapping, bridging, lending, borrowing and staking.”

These sorts of transactions occur when crypto assets are traded through the blockchain without the involvement of a central party.

• “The main issue that arises is whether these activities involve disposals of cryptoassets and acquisitions of different cryptoassets for tax ...