From next month the Inland Revenue Department will gain a much clearer view of New Zealand-based cryptocurrency activity, and a tax expert is warning investors to be aware of what they owe.

From April 1, all crypto-asset service providers, including trading platforms and brokers, are required to collect and report user identities and tax residency details.

This data must be filed with the IRD annually and archived for seven years.

Ian Fay, a tax partner at Deloitte, notes that while cryptocurrency gains have always been taxable in New Zealand, the IRD will now have full visibility over the trading activities of all local tax residents.

Ian explains to Kathryn where investors need to be careful they are meeting the obligations.