New Zealand coalition party ACT pledges tax break for long-held crypto

ACT, New Zealand’s fourth-largest party and a member of the ruling coalition, has unveiled a tax policy pledge that would exempt individual investors from capital gains tax on cryptocurrency holdings such as Bitcoin if they are sold after being held for more than 12 months. The proposal would also exempt small capital gains taxes arising from everyday crypto payments for items such as groceries or coffee, in a move aimed at making digital assets more practical as a means of payment. Sales made in under one year and trading profits earned by professional traders would remain subject to existing income tax rates. ACT Deputy Leader Nicole McKee said the party plans to overhaul the system so the tax authority can focus on major taxable activities instead of policing small transactions that waste administrative costs. McKee also made clear ACT intends to pursue a fintech regulatory sandbox and legislation on stablecoins.