For over a decade, cryptocurrency has been synonymous with a promise of freedom: access to a decentralised digital realm operating beyond the reach of traditional banks and governments.

That promise is about to be broken.

A global tax crackdown is coming for crypto, and New Zealand is very much part of it. Starting in 2026, the Inland Revenue Department (IRD) will gain unprecedented access to trading histories, whether investors are using local exchanges or offshore platforms.

The Crypto-Asset Reporting Framework (CARF), a new international standard, takes effect from April 1 next year. This will close a major gap in global tax transparency for crypto.

The CARF is the crypto cousin of the OECD’s Common Reporting Standard which requires financial institutions to identify and share information about accounts held by foreign tax residents. This makes it far more difficult to hide assets offshore to evade taxes.

Until now, the major challenge has been the sheer volume of unreported offshore crypto activity. A recent IRD report revealed 80% of cryptocurrency transactions by New Zealanders occur on overseas trading........

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