Exposure to Cryptocurrency in New Zealand

Get exposure to cryptocurrency the Simple, Smart and Trusted way.

buy cryptocurrency in new zealand

What Is Cryptocurrency?

Cryptocurrencies are an emerging asset class that allows you to buy, sell or invest digitally. Since the creation of Bitcoin in 2009, cryptocurrencies have become a globally recognised alternative investment. Cryptocurrencies don’t have physical form; they are digital assets based on blockchain technology, and are held on distributed ledgers controlled by decentralised networks.

Cryptocurrencies handle payments and investments without the need for centralised trusted parties such as banks. Unlike cash, many cryptocurrencies are not subject to inflation resulting from credit creation by governments.

Cryptocurrency in New Zealand

Cryptocurrency is a legal investment in NZ. However, the Inland Revenue Department (IRD) treats digital assets like property and this can influence the way they are taxed and in particular whether they are subject to Capital Gains Tax (CGT).

You can buy bitcoin or other cryptocurrencies and hold as an investment, or if you have business you can accept cryptocurrency as payment. Cryptocurrencies are not recognised as legal tender in NZ, but accepting them as payment is considered a barter transaction and remains taxable.

Always seek professional tax advice.

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why invest in vault international bitcoin fund

What is the Vault International Bitcoin Fund?

The Vault International Bitcoin Fund (VIBF) is a PIE Fund based in NZ. It is a quick, easy and simple way to invest in Bitcoin through trusted NZ platforms, without you needing to go through complex steps in investing in Bitcoin directly.

Direct Investment Comparison:
Bitcoin vs Vault International Bitcoin Fund

Below is a detailed comparison of investing in Bitcoin directly versus investing in the VIBF.

Investment in BitcoinInvestment in VIBF
Simplicity
  • Unfamiliar technology and platforms.
  • Unfamiliar terminology.
  • Unfamiliar storage options.
  • Familiar investment vehicle (NZ PIE fund).
  • Purchased via mainstream retail share platforms, or via trusted FANZ financial advisor, or via trusted fund manager.
  • Financial advice on appropriate % and time frame to hold.
  • The VIBF is offered on multiple Wealth Advisory platforms.
Security
  • Investors are responsible for their own security (12 - 24 word passphrase) on a Digital or Hardware wallet (e.g. Trezor $120 - $270 x 2 x 2 is recommended).
  • Or store on an exchange. Please note storage on an exchange or in a digital wallet comes with a risk, (eg Cryptopia, Mt Gox).
  • Risk of scams, error, and loss of assets, especially for the less tech savvy investor.
  • Storage of digital assets may be an issue for NZ Trusts and companies, and for estate planning.
  • Vault Digital Funds does not hold investor assets.
  • Investors cash and VIBF Units are held by regulated NZ Custodian, Adminis.
  • Underlying Bitcoin assets are stored offline, in a regulated custodian in cold storage (eg Fidelity).
  • Vault uses a multi ETF / multi custody approach.
Tax
  • Liable for Capital Gains Tax up to 39%.
  • Individual investor is responsible for records, tax calculation and filing.
  • Taxed under FDR regime, ie 0% Capital Gains Tax.
  • FDR tax on 5% “deemed” dividend x 28% max PIR, effectively a maximum 1.4% tax rate pa.
  • VIBF PIE fund manages tax calc and payment for you.
Fees
  • Up to 1.2-2.5% fees on purchase and sale.
  • Plus forex fees, bank fees, network fees, exchange fees, wallet fees, wallet exit fees, etc.
  • 0.95% Per annum (incl cost of underlying ETFs)
  • Distributors may charge broker / AUM
  • No performance fees.
  • Spread margin of 0.25% on buy and sell (note this fee goes to the VIBF, not Vault Digital Funds).

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Why Should You Invest in Vault International Bitcoin Fund?

Investing in Bitcoin through the VIBF, a New Zealand based PIE fund, is:

  • Simple: you buy units in a PIE fund (not Bitcoin directly)
  • Smart: you invest in a NZ PIE fund structure which may provide tax benefits
  • Trusted: you invest in a regulated investment product – a managed investment scheme

The VIBF is a registered managed investment fund in NZ that only invests in regulated overseas funds that hold their assets in cold storage secured by international grade security. Vault doesn’t hold your assets - these are held by a regulated NZ custodian.

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