Cryptocurrency is a very hot topic these days. It has been around for years, but it has recently started to gain traction again. One of the places you can find cryptocurrency is in an online casino. You’ve probably heard of Bitcoin or Ethereum, two emerging forms of cryptocurrency that are gaining popularity worldwide. New Zealand is no exception, with more cryptocurrency exchanges companies popping up all the time.
Although regulation in this sector is still in its infancy, if you plan to use cryptocurrencies in your business, you should be aware of the restrictions that apply to you. The purpose of this article is to explain how bitcoin works and what its legal position is in New Zealand.
What Is Cryptocurrency?
Cryptocurrency is a digital asset designed to work as a medium of exchange. It uses cryptography to secure its transactions and control new units’ creation. Cryptocurrencies are decentralized, not subject to government or financial institution control. Bitcoin was the first cryptocurrency to be created in 2009.
How Does Cryptocurrency Work In New Zealand?
Cryptocurrencies are not regulated in New Zealand, but they are subject to general law. This means that you can use them in your business, but you need to be aware of the potential legal implications. For example, if you decide to accept bitcoin as payment for goods or services, you will need to account for any GST payable on those transactions. This means that if you are selling a digital good and the price is $200, then 20 percent of that amount needs to be included on your sales statement.
New legislation has been passed recently regarding cryptocurrency in New Zealand. Under this law, cryptocurrencies cannot be treated as foreign currency or money. These regulations will require businesses who want to operate with cryptocurrencies to change their current practices around tax laws. This includes how they account for transactions made using cryptocurrency and whether GST should apply when receiving it as payment.
They also need to know what withholding taxes may apply when transacting with them internally within an organization (for example paying employees). There is no official guidance on these issues from the Inland Revenue Department or Financial Markets Authority, but we can expect this to change shortly.
Cryptocurrency License In New Zealand
If you want to start a business that will use cryptocurrency, you need to apply for a license from the Financial Markets Authority. This is not an easy process, and it can take some time, so make sure you are well prepared before applying. The FMA has released guidance on how to go about this, including information on what needs to be included in your application.
The good news is that there are no specific rules or regulations around using cryptocurrencies in online casinos in New Zealand at this stage. This means that as long as your casino is licensed by the Department of Internal Affairs (DIA), you should be able to accept bitcoin or any other form of cryptocurrency as payment without any problems.
The Use Of Crypto In Online Casino In New Zealand
Cryptocurrencies are becoming more and more popular in the online casino world. Bitcoin, Ethereum, and Litecoin are just a few cryptocurrencies that can be used at various online casinos. In New Zealand, there is no regulation specifically for online casinos yet, but this is likely to change soon. So far, there have been no cases where someone has been prosecuted for using cryptocurrency in an online casino transaction.
Online casinos are also currently unregulated under New Zealand law. As such, you need to be very careful about where you choose to play and the type of games they offer. If a casino accepts cryptocurrency deposits or withdrawals, it is likely just as safe as any other online casino in NZ.
However, if your chosen online casino does not accept cryptocurrencies (and therefore, you have to deposit using fiat money), make sure that you read reviews before deciding which one to use. This may help ensure both security and safety when transferring funds between sites.
Cryptocurrency is quickly growing in popularity. Many online casinos are now accepting cryptocurrency to deposit and withdraw their funds for playing games. New Zealand authorities are currently looking into ways to regulate cryptocurrency.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.