Since the highly-anticipated launch of the world’s first-ever cryptocurrency, Bitcoin, there has been no looking back for this domain of virtual currencies. Having borne its share of applauds and criticism, the digital currency area has established itself as a strong contender of fiat money.
The fast-evolving technologies in the global market have rendered the financial heads to come up with secure, reliable, and progressive payments pedagogy. Cryptocurrency payments, owing to its anonymity factor, have always been under the scrutiny of regulatory authorities from around the world. Where earlier nations competed to outshine in the field of the working sector, the advent of cryptocurrencies has brought them at loggerheads to succeed in establishing themselves as the digital currency rulers.
Blockchain enthusiasts from every corner of the globe are putting in their piece of mind to develop better methods and platforms trading in cryptocurrencies. With the USA, the U.K and other major countries exploring the virtual currency domain, New Zealand has emerged as a strong player in the crypto sphere recently. The country made some path-breaking announcements focused around cryptocurrencies in the current year, making it a hot-shot destination for many.
Recently, the Director of Public Rulings of Inland Revenue Department of New Zealand, Susan Price, revealed about their new legislation which will work as a guiding force in helping the companies in determining the tax implications on cryptocurrency earnings, if the permanent employees’ receive their salaries in crypto coins. The concerned ruling became enforced from September 1, 2019, and shall remain effective for the succeeding three years.
With New Zealand’s government transforming itself as a progressive power in the field of digital payments and services, this new ruling is surely a welcoming step for the crypto space.
The inclination of the people towards digital and decentralized economy lies in line with the aim of the jurisdiction given by the authorities through which the government opines to penetrate its control on crucial tax and payments networks with a practical and realistic approach.
This is not the first time that a country has taken regulatory steps for controlling dealing in cryptocurrencies in the economy. Australia, the U.K, and others have stringent laws concerning the same. Though, New Zealand’s ruling is undoubtedly the next-level step in the arena. The ruling affirms that the crypto payments must be fixed to at least one cryptocurrency. It also gives information about the tax implications related to the payment of salaries and wages.
The global working space is witnessing drastic changes in the work patterns and payment methods. Markets and institutions that will understand the complexities and demands of the growing economy and will shift from the traditional ways to the new digital pedagogy are sure to get the early-bird benefits.
New Zealand is indulgence in the growth of technology firms and startups in its native land to attract the best minds for its development. The jurisdiction given by the government will help in the implementation of regulations in crypto payment systems, thereby flourishing the industry.
The efforts shown by the New Zealand government in developing and pushing the economy to a digital working paradigm, it sets a benchmark for the world to see and follow. By recognizing the need of the hour, New Zealand, through its progressive steps, shows its trust in cryptocurrencies evolving as the ultimate payments-facilitating power soon.