New Zealand's tax authorities have identified over 200,000 citizens who failed to declare cryptocurrency income. They are in trouble now. The Inland Revenue Department (IRD) is reminding investors that virtual assets are taxable. It plans to intensify efforts to track non-disclosure of digital asset earnings. The IRD is targeting taxpayers actively dealing in cryptocurrencies without reporting income. Just to remind you, in 2020, New Zealand updated its guidelines on digital assets, and cryptocurrencies are now treated as property for tax purposes. If you make profit with your crypto investments, the state would like to get its share. The new rules make digital assets and mining income taxable under specific conditions. The IRD has identified 227,000 unique crypto users in New Zealand. These users conducted over 7 million transactions, according to the latest reports. The total value of these transactions is estimated at NZD 7.8 billion (approximately $4.77 billion). Detailed analysis of this data has helped the IRD identify non-compliant taxpayers and those with significant holdings, and of course, those who are profitting and not sharing with the authorities for whatever reason, intentionally or not. Trevor Jeffries, an IRD spokesperson, commented on the situation. "Cryptoasset values have reached new highs," he said. "Now is a good time for people to think seriously about tax on their cryptoasset activity." Jeffries urged investors to consider their tax obligations. He emphasized the risks of not declaring all taxable activities. The IRD has provided extensive guidance on crypto taxes. Last year, the department notified high-risk customers. It allowed them to address non-compliance issues before facing an audit. The IRD has now sent a new round of letters to non-compliant crypto investors. Jeffries stated that the IRD is intensifying its compliance activities. "We have the tools and analytics capabilities to identify and expose cryptoasset activities," he warned. The IRD is collaborating with domestic and overseas exchanges to gather information about crypto investors. It is also working with other tax jurisdictions to obtain data on transactions outside New Zealand. Simply put, the authorities want to know more about cryptolife of the new zealanders online. New Zealand's crypto regulations remain largely undeveloped. However, Commerce Minister Andrew Bayly suggests a more proactive approach.

A recent study reveals a significant shift in investment preferences among New Zealanders. Many of them suddenly favor cryptocurrencies over real estate. The survey, conducted by digital asset exchange Easy Crypto, highlights that nearly 20% of New Zealanders own cryptocurrencies, outpacing the ownership of investment properties. The study's findings indicate a growing interest in digital assets among Kiwis. Approximately 70% of respondents cited the potential for high returns as the main reason for their investment in cryptocurrencies. So, the traditional appeal of real estate, which has long been considered a stable and lucrative investment, has vanished. Natalie Brunell, CEO of Easy Crypto, noted the rapid adoption of digital assets in New Zealand. She emphasized that the trend reflects a broader global shift towards decentralized finance and digital currencies. The survey results also showed that the majority of crypto investors are under the age of 45. While older people still tend to invest in real estate, younger generations have embraced the idea of cryptocurrency in whole. The study found that real estate no longer holds the dominant position it once did. Amazingly, only 15% of respondents indicated real estate as their primary investment vehicle. That is fairly easy to explain. Crypto remains a kind of Wild West, while property prices and stricter lending regulations are making real estate less accessible to younger investors. Moreover, the survey highlighted that the volatile nature of cryptocurrencies does not deter New Zealand investors. About 60% of respondents expressed confidence in the long-term value of digital assets despite market fluctuations. In other words, Bitcoin bullish and bearish sentiments are not scaring people off at all. Probably, because more and more people tend to believe that cryptocurrencies will continue rise in value along with mainstream acceptance. But there is one more pretty amazing finding in the study. Over 40% of New Zealanders who hold crypto, also hold other forms of digital assets. Such as NFTs and DeFi tokens. So it's not about "usual suspect" like Bitcoin or Ether. Even the novice investors are trying to diversify their assets to spread risk and capitalize on various growth opportunities within the digital asset space.