New Zealand vs Timor-Leste
Crypto regulation comparison
New Zealand
Timor-Leste
Cryptocurrency is legal in New Zealand and treated as a form of property for tax purposes. The IRD taxes crypto depending on the purpose of acquisition — if bought with the intention to sell, gains are taxable income. New Zealand does not have a formal capital gains tax, but crypto profits are often taxable under income tax rules. Exchanges are not specifically licensed but must comply with AML/CFT requirements.
Timor-Leste has no specific cryptocurrency regulation. Uses the US dollar as its official currency.
Key Points
- Crypto treated as property; gains taxable if acquired with intent to dispose
- No formal capital gains tax, but income tax applies to crypto trading profits
- Tax rates from 10.5% to 39% depending on income bracket
- Crypto salary payments are treated as taxable income
- Exchanges must comply with AML/CFT Act and register as reporting entities with DIA
Key Points
- No specific cryptocurrency legislation
- Uses the US dollar as official currency
- Central bank has not addressed crypto regulation
- Very limited financial infrastructure
- Minimal crypto adoption