New Zealand's tax authorities have alerted over 200,000 citizens for failing to report their cryptocurrency earnings, emphasising that virtual assets are taxable under updated guidelines since 2020.

The Inland Revenue Department (IRD) has identified 227,000 unique crypto users with transactions totaling NZD 7.8 billion ($4.77 billion), aiding in pinpointing non-compliance.

Trevor Jeffries from IRD highlighted the importance of declaring profits amidst record-high crypto values, urging compliance to avoid audit risks.

The department has intensified efforts to track undeclared crypto income, including collaboration with exchanges and global jurisdictions for data sharing.

Despite minimal regulatory framework, calls are increasing for a more proactive stance on digital assets from government officials like Minister Andrew Bayly.