New Zealand companies are required to report on the crypt-currency transactions of their clients. The corresponding order was issued by the New Zealand Revenue Authority (IRD).
The IRD explained that they wanted to better understand the activity in the cryptocurrency space and develop a methodology for the taxation of such assets. According to Radio New Zealand, the business will have to transmit information not only about the use of cryptocurrencies, including types and amounts of transactions, but also about its clients.
"IRD is requesting this information to improve its understanding of the cryptographic assets space in New Zealand. This will allow us to determine how to help taxpayers better meet their income tax obligations," the agency said.
"I think the IRD is simply expanding its tax base. Crypto assets are becoming more and more popular and we're seeing a huge increase in the proportion of people in New Zealand who are involved in transactions with them," said Easy Crypto CEO Janine Granger.
She also expressed concern that the tax authorities' interest in citizens' transactions with cryptov currencies may violate their privacy. At the same time Easy Crypto intends to comply with the IRD's requirement as it sees no legal grounds to refuse to transfer information.
"Many people think that they have nothing to hide and should not worry about. However, the meaning of privacy is not to help people who want to hide something, but to form an equal, open and free society," Grainger added.