A tax expert says it might be time for crypto-currency users to cut their losses and get out of the game.

The IRD is beginning to crack down on people not paying tax when they exchange or acquire crypto-currency for the purpose of selling it.

Deloitte tax partner Allan Bullot told Mike Hosking the IRD's interest might lead to a drop in value.

"I did hear someone say a number of years ago, in respect to property, that once the government starts trying to tax it, it is probably time to start selling it because its price is about to go down, who knows what happens in that regard."

Bullot says crypto-currency users are walking the tight-rope if they think they can avoid paying tax.

LISTEN ABOVE AS ALLAN BULLOT SPEAKS WITH MIKE HOSKING