New Zealand Cryptocurrency Laws Allow For Salary In Crypto

Among the many countries adopting cryptocurrency, New Zealand has taken the next step to allow for companies to pay their employees’ salaries in crypto. Paying a salary in crypto allows for both employer and employee to benefit.

Even though cryptocurrency tokens are revolutionizing the world of finance, very few countries have come forward in regulating digital assets, even fewer have tried to empower their people through the incorporation of the technology. New Zealand’s cryptocurrency laws are the first to see the legalization of payments of a salary in crypto, starting September 1st, 2019. All cryptocurrency tokens used as payment should be tied to fiat and must have a direct standard form of conversion available, making Bitcoin a great example as its value is generally tied to USD and available for exchange via multiple sources. Their approach sees cryptocurrency regulations falling into line with New Zealand’s cryptocurrency laws and the country’s national tax scheme.

There are a few rules to be followed according to New Zealand’s crypto legislation. Every salary in crypto needs to be accounted for in full amount in the contract, which will allow the government to track and tax users’ earnings in cryptocurrency. It is to be noted that self-employed or freelance workers are not allowed to be paid in cryptocurrency as there is no authorized confirmation of money coming in and out of the owner’s account. Self-employed CEOs could give themselves raises, bonuses or edit the books without anyone knowing; this is why they are excluded from the crypto announcement.

Cryptocurrency is making a lot of lead way since its introduction in 2009, although blockchain technology has barely left the starting line.

Blockchain technology is a complex idea to grasp, but it has the potential to better every industry as it has revolutionized the financial sector. Many countries are moving forward in bettering their systems through the use of cryptocurrency and blockchain. From Venezuela creating its own, unique currency to the EU pushing banks to accept cryptocurrency, New Zealand has gone the extra mile as to incorporate it positively into its laws. The people of New Zealand are no strangers to cryptocurrency as we see the locals backing their charities and companies with cryptocurrency. In 2018, New Zealand’s state-backed innovation institute awarded crypto wallet and trading service Vimba more than USD 330,000 to progress. Locals are also on the lookout for ways to include cryptocurrency into the future, CryptoForForests sells organic ‘tree-honey’ for crypto to plant more of these honey-producing trees to fill up the empty forest space. Marketplace Centrality, based in New Zealand, also reached new highs as it partnered with Amazon as an official AWS technology partner.

As New Zealand marks such a small portion of the world map, we see a lot of activity filtering through and impacting the ways other, bigger countries see cryptocurrency.

Although the news sounds more like a regulation, which it is, it is also an incredible starting point in leading other countries forward. The regulation allows for the government to track and tax your salary, leaving very little room for you to avoid tax due to the contract which specifies the amount and is submitted to the government. By enforcing this regulation, government and cryptocurrency can fight any claims of ‘money laundering’ or corruption. Hopefully New Zealand will find other and better ways to implement blockchain, like tracking where tax money is going, but for now, the step it took is a success. We hope to see many more countries adopting cryptocurrency in the future but for now, we look forward to a revolutionary September 1st for New Zealand.

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