New crypto tax rules for staking and stablecoins are on the table. Here’s the fine print
A Bill awaiting the new Parliament would change how some crypto lending, staking and stablecoins are taxed from 1 April 2027. Industry body BlockchainNZ backs the direction but says the rules need work. Nothing changes for investors yet.
By Eli Hylands
· 3 min read
New Zealand crypto investors could see two targeted tax changes from 1 April 2027 under a Bill now awaiting the new Parliament.
The proposals would make some crypto lending and staking easier to manage for tax, and remove tax on certain stablecoin gains. They would not create a general tax break for crypto. Inland Revenue officials said the changes would leave the general treatment of speculative gains unchanged.
In a 4 November submission to Parliament’s Finance and Expenditure Committee, industry body BlockchainNZ said it supports the Bill’s direction. But it said the rules “need refinement to work effectively in practice” for people using DeFi, staking, lending and payment stablecoins.
What would change for lending and staking
Today, moving crypto into a pool or smart contract may count as selling one asset and acquiring another. The Bill would treat qualifying arrangements like a loan instead, so your original cost carries through and no interim gain or loss arises.
The proposed rules cover lending, with examples including wrapping, bridging, collateral and staking pools. But the limits are easy to miss.
You must expect the arrangement to last a year or less, and you must get back the original asset, or an identical one, within a year, unless Inland Revenue allows longer. If you get back a different asset or a different proportion, the rules don’t apply.
If an arrangement stops qualifying, it fails from the start and the normal tax rules apply. And any rewards you earn remain taxable.
“If an arrangement stops qualifying, it fails from the start.”
What would change for stablecoins
A proposed exemption would cover gains on fiat-pegged stablecoins that would otherwise be taxed only because they were bought to sell. Losses would also fall outside that rule. To qualify, the coin’s market value must be within 2% of its fiat reference when you acquire it.
The exemption has clear limits. It wouldn’t apply to dealers or profit-making schemes, or to coins pegged to gold or other commodities. And swapping another token into a stablecoin can still be taxable on that token’s gain.
What BlockchainNZ wants changed
BlockchainNZ is asking for three things. It wants an elective option to apply the changes back to 1 January 2009, and clearer rules, with an option to stay under the ordinary tax rules. It also wants a 5% stablecoin tolerance rather than 2%, or room for limited short-term moves outside 2%.
These are requests, not Government policy.
Why the timing is uncertain
The Bill was introduced on 10 September. Parliament dissolved on 1 October ahead of the 7 November election. Business before Parliament lapses on dissolution, and the new House can reinstate it by resolution.
The proposals could also change before any law is passed. Officials noted they had not had wider public policy consultation.
What applies today
Inland Revenue says amounts from selling, trading or exchanging crypto are taxable in most cases. That includes swapping one crypto for another.
New Zealand-based crypto service providers have had to collect user and tax-residency information since 1 April 2026, with the first reports due by 30 June 2027. Inland Revenue says it will match this data to tax returns. It has identified 355,000 unique crypto users in New Zealand.
What to do now
The current rules still apply, so the most useful step is to keep good records now. They matter today, and the proposed rules would rely on them too.
Keep every transaction record, including dates, amounts and NZD values for buys, sells and swaps. When you buy a stablecoin, record its price: you would need it to show the coin was within 2% of its peg.
For lending and staking, note when each arrangement starts, when it ends and what comes back. Track rewards separately, with their value when you receive them, as they are expected to stay taxable.
Inland Revenue asks investors to declare crypto income or losses, and suggests an independent adviser if needed. Give accurate details to your provider, too: Inland Revenue may apply penalties to users who withhold required information or give false information.
This article is general information only and is not financial advice. Crypto-assets can be volatile, and blockchain transfers are generally irreversible.
Eli Hylands
Eli is the founder of Flow Crypto and editor of Flow News, covering crypto for New Zealanders.
