New Zealand will legally allow companies to pay salaries in cryptocurrency starting September 1, becoming the first nation to do so, according to a Financial Times report.
The country requires the preferred cryptocurrency to be pegged to a standard currency and directly convertible into a normal form of payment. This stipulation allows bitcoin to replace the New Zealand dollar on workers' paychecks.
Companies paying workers in cryptocurrency can deduct income tax through the country's pay-as-you-earn plan. Visit the Markets Insider homepage for more stories. New Zealand has become the first country to legalize cryptocurrency salaries, according to a report Monday from the Financial Times. The country's tax agency ruled salaries and wages may be paid in cryptocurrencies so long as the preferred digital coin is pegged to at least one standard, or fiat, currency. New Zealand also requires that the crypto of choice be directly convertible into a standard form of payment.
This allows bitcoin — the world's largest cryptocurrency by market cap — to serve as a form of payment for New Zealand workers when the law goes into effect September 1. The decision was originally filed in an August 7 note , which also detailed New Zealand's plans to allow for bonuses to be paid in cryptocurrency.
The salary option will still fall under the nation's income tax scheme, and the ruling excludes self-employed workers from switching their income to cryptocurrency. The move brings the controversial digital asset further into the realm of everyday payment methods. Cryptocurrencies are relatively free of regulation , and their untrackable nature helped them grow popular with anonymous online purchases.
The move serves as "another step towards governments recognizing that actually people are wanting to be paid in" cryptocurrencies, said Thomas Hulme, a solicitor at London-based law firm Mackrell Turner Garrett, to the FT. Markets Insider is looking for a panel of millennial investors. Cryptocurrencies are also considered a novel — and volatile — investment asset. Bitcoin currently trades at a month high, surging as investors flee stocks on trade-war fears. New Zealand's decision comes nearly two months after Facebook announced its own cryptocurrency , named Libra.
Though the reveal stoked privacy concerns from investors and government officials alike, the tech giant's interest in digital currency added new legitimacy to the technology.
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Emilio Janus Aug 12, This confirms that such payments are entirely within the law, and clarifies how to deal with them in accounting. The ruling covers payment of wages or salary including bonuses either wholly or in part using cryptocurrency. The crypto-assets paid should be able to be directly converted to fiat currency via an exchange, and a significant functionality of the asset should be as a currency. As such, they are subject to pay as you earn PAYE income tax at the usual rates.
Welcome to New Zealand crypto world! At last, you can find the useful quick guide concerning country and find out the safest platforms for trading. Enjoy the reading and stay tuned. We all have at least one friend who was hit by the crypto fever. That is how popular trading bitcoin and other digital currencies is today. This market offers plenty of opportunities to earn money, but your options vary depending on the platform you use and your location. This article will focus on the crypto market in New Zealand. The first section will cover the legality of BTC. We will mention issues of NZ-based exchanges before moving on to discuss providers and services you can visit to buy bitcoins. Finally, we will share some tips on trading crypto and teach you how to safely store your assets!
Last updated: 10 January Buying Bitcoin is easier than you might think. The two main ways of buying Bitcoin are to find a Bitcoin broker and purchase directly, or to visit a cryptocurrency exchange and buy Bitcoin on the open market.
This is our quick guide to just one way to buy BTC. Compare some other options in the table. Created in by an unknown person or persons using the alias Satoshi Nakamoto, Bitcoin is a form of decentralised electronic cash designed to provide a viable alternative to traditional fiat currency.
Rather than having to deal with a centralised authority such as a bank to process transactions, Bitcoin holders can transfer their coins directly to one another on a peer-to-peer network. All Bitcoin transactions are tracked on a public ledger known as the blockchainand people working as miners verify transactions and update the blockchain. Read our guide to some of the best Bitcoin wallets for. The next step is to decide how and where you will buy Bitcoin. There are hundreds of platforms to choose from, and they can be separated into three main categories: Bitcoin brokers Brokers offer the quickest and easiest way to buy Bitcoin, allowing you to pay for your digital coins using fiat currency like NZD or USD.
Brokers offer user-friendly platforms and allow you to buy Bitcoin using familiar payment methods like a credit card or a bank transfer. Their main downside is that they often charge higher fees than other options. BitPrime is a New Zealand-based cryptocurrency broker. Cryptocurrency trading platforms These platforms, such as Binance and Huobi. They tend to offer lower fees than brokers and provide access to a more diverse range of coins.
Peer-to-peer P2P Bitcoin exchanges Peer-to-peer exchanges cut out the middleman and allow users to trade directly with one. The seller has the freedom to specify the price they want and their accepted payment methods, and this method allows you to trade with increased privacy.
However, you may have to settle for a price higher than the market exchange rate. Examples of peer-to-peer exchanges include LocalBitcoins and Paxful. Start comparing exchanges. The final step is to submit an order through your chosen platform.
For most first-timers, the easiest and most convenient option is to use a Bitcoin broker. Depending on the exchange you use and the regulatory requirements it is subject to, you may be able to sign up simply by providing your email address or you may need to provide your full name, contact information and proof of ID before being allowed to trade.
Want to turn your cash into cryptocurrency? There are several ways to buy Bitcoin with cash in New Zealand, including the following:.
Buying Bitcoin with cash is quick and convenient but is usually more expensive than other options. Get a complete list of exchanges that let you buy crypto with cash. Many Bitcoin brokers and exchanges allow you to buy Bitcoin using your credit card.
These include platforms like eToro and Coinmama, and using your credit card allows you to make quick and convenient purchases. However, credit card transactions tend to attract higher fees and some banks have even blocked customers from buying crypto with plastic. Debit cards are nowhere near as widely accepted as credit cards but can still be used to buy cryptocurrency on some platforms.
Got a PayPal account and want to use it to buy Bitcoin? The good news is that you can definitely do this; the bad news is that only a limited number of platforms accept PayPal. VirWox and Paxful are two of the better-known platforms that accept PayPal at the time of writing.
Head to our full list of exchanges that support PayPal. Another way to buy Bitcoin with New Zealand dollars is to choose a platform that accepts bank transfer deposits. The list of platforms that allow bank transfers is an extensive one and includes sites like Easy CryptoIndependent ReserveVimbaBitPrime and. Another option is to choose a platform that accepts POLi Payments. Transfers using this system are typically processed more or less instantly, but they may attract higher fees. The key is finding the exchange that offers the right features and fees for you.
If you want to buy Bitcoin in New Zealand, most exchanges will require you to verify your identity. However, if you value your privacy, it is still possible to buy Bitcoin anonymously. Check out our guide on how to buy Bitcoin anonymously.
With hundreds of platforms to choose from, finding the best Bitcoin exchange for your needs is a challenging task. To make your choice easier, consider these key factors when comparing exchanges:.
Learn more about how to choose an exchange in our cryptocurrency exchange guide. Choose a Bitcoin exchange. So, should you buy Bitcoin from a New Zealand exchange or from a foreign platform?
To help you decide, consider the pros and cons of buying on a Kiwi exchange. You can access local customer support. You get better consumer protection if your funds go missing. Some bigger platforms based overseas offer much better liquidity. Regardless of whether you choose a New Zealand or overseas-based crypto exchange, make sure you compare a range of options before deciding which platform to use.
Want to buy Bitcoin from a cryptocurrency broker using New Zealand dollars? You can sign up for an Easy Crypto account by providing your email address and creating a password. Remember to also enable 2-factor authentication on your account for extra security.
Deposit funds into your account From your Easy Crypto account dashboard, select the currency you want to buy — in this case, Bitcoin BTC.
Once Easy Crypto has received your payment, your order will be automatically processed and will typically arrive in your inbox within a few minutes. Remember to take a moment to review the full details of the transaction before you finalise your transaction.
While it may be the biggest and best-known, there are more than 1, other cryptocurrencies available as of July and growing. While the value of some of these coins is questionable, there are plenty of other digital currencies worth considering as alternatives to Bitcoin. Want to get your hands on some Bitcoin without actually buying it? There are a few options available:. Over-the-counter OTC brokers can offer better prices, increased transaction limits and faster processing times to large-volume traders.
Check out our OTC cryptocurrency trading guide to find out how buying OTC works as well as the benefits and risks you should be aware of. If you want to buy Bitcoin, start comparing a range of cryptocurrency brokers and exchanges. Look at their features, fees, security and overall reputation to decide which platform is the right fit for you. You can then sign up for an account and get ready to start trading.
However, make sure you research your purchase thoroughly and are fully aware of the risks involved before you buy. Compare Bitcoin exchanges. Each individual Bitcoin is divisible to 0.
Can I store my Bitcoin on an exchange? As a result, the safest option is to transfer your coins to a secure, private wallet. Compare some of the most popular cryptocurrency wallets available.
The easiest way to buy Bitcoin in New Zealand is to use a trusted Bitcoin broker. These services make it as simple as possible to get your hands on some BTC. Their platforms are easy to use, you can pay with NZD using everyday payment methods like your credit card or a bank transfer, and transactions are generally processed quite quickly. Can I buy Bitcoin with leverage? It is possible to buy Bitcoin with leverage.
What determines the price of Bitcoin? There is a limited supply of BTC in circulation and new coins are generated at a predictable rate, but there are several factors that can influence demand. Is there a Bitcoin supply limit? The maximum supply of Bitcoin is limited to 21 million coins. How long does it take to buy Bitcoin? The time it takes to buy Bitcoin varies depending on the payment method and platform you use. For example, credit card purchases may be processed instantly while bank transfers may take one to two business days to clear.
Check the terms and conditions of your broker or crypto exchange for details of average processing times, and remember that the amount of activity on the Bitcoin network can also have an effect.
How can I sell Bitcoin? If you want to sell Bitcoin, you once again have a wide variety of platforms to choose from, including brokers and a long list of crypto exchanges. You also have the flexibility to exchange your Bitcoin for New Zealand dollars or to sell it for an extensive range of cryptocurrencies. Check out our how to sell Bitcoin guide for step-by-step instructions on what you need to.
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