ACT Party Proposes Waiving Capital Gains Tax on Crypto

New Zealand’s ACT Party, holding 11 seats in Parliament, has announced a policy proposal aimed at modernising the treatment of digital assets. The plan seeks to encourage long‑term retail investment in cryptocurrencies by removing capital gains tax on holdings kept for more than a year.

Key Elements of the Proposal

• Capital gains tax would be waived for individual retail investors who hold crypto assets for over 12 months.
• Professional traders and businesses would continue to be taxed under existing rules.
• Crypto purchases of low monetary value would be exempt from tax when used as a payment method.
• Clear regulatory guidelines would be established for qualifying stablecoins.
• Legal and tax rules would be defined for tokenised securities and real‑world assets.
• A regulatory sandbox would be created to allow startups to test innovative financial products.
• The party pledged a review of current regulations to assess whether crypto businesses are excluded from the broader financial infrastructure.

Political Context

Deputy ACT Leader Nicole McKee emphasized that clear rules and reduced red tape are intended to unlock New Zealand’s digital economy, supporting investment, job creation, and economic growth. The proposal contrasts with previous statements from New Zealand’s former central bank governor, who expressed opposition to stablecoins.

Broader Regulatory Landscape

The government is also considering a bill to adopt the OECD’s Crypto Asset Reporting Framework (CARF), which would enhance international reporting standards for crypto assets.