Cryptocurrency assets are gaining increasing significance in national policy, occupying an important place in the election promises of parties worldwide, all vying to secure the support of crypto investors.
On Thursday, the "Association of Consumers and Taxpayers" (ACT) party unveiled a proposal to modernize New Zealand's approach to digital assets, involving leveraging the benefits of tokenization, stablecoin payments, and cryptocurrency-related tax incentive measures within the country's economic structure.
The right-leaning conservative party, holding 11 seats in New Zealand's parliament, proposed abolishing the capital gains tax for taxpayers who hold these assets for more than a year, opening up opportunities for their use as effective long-term investment tools.
This rule would apply only to private retail investors; professional traders and businesses would still be subject to existing tax rules, and transactions involving assets held for less than a year would be taxed.
Furthermore, the ACT party's plan also exempts from tax small personal purchases paid for with cryptocurrency assets, paving the way for their use as an effective payment method nationwide.
This would be followed by other provisions, including establishing a clear regulatory and tax framework for relevant crypto-stablecoins, clear legal and tax rules for tokenized securities and real-world assets, creating a "sandbox" for startups to test innovative new products, and reviewing current regulatory policies to determine whether cryptocurrency companies have been excluded from the existing financial infrastructure.
ACT deputy leader Nicole McKee emphasized that "with clear rules, sensible safeguards, and reduced red tape, the ACT party will unlock the potential of New Zealand's digital economy and help New Zealanders invest, create, and transact with confidence in a modern, competitive economy."
Although New Zealand has pursued policies that could be described as anti-cryptocurrency, including opposition to stablecoins from the former Governor of the Reserve Bank of New Zealand, in its pledge, the ACT party stressed that "ACT will make New Zealand a trusted hub for digital finance, modern capital markets, and financial innovation, supporting productive investment, the creation of high-paying jobs, and economic growth."
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