New Zealand Bans Crypto ATMs to Curb Money Laundering

New Zealand has implemented a ban on cryptocurrency ATMs and a cap on international cash transfers as part of a broader initiative to disrupt money laundering and organized financial crime. The measures were announced by Associate Justice Minister Nicole McKee, who highlighted that these actions are integral to the government’s overhaul of its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regime. The reform package includes a complete ban on crypto ATMs and a $5,000 limit on international cash transfers, both designed to block avenues used by criminals to move illicit funds.

McKee emphasized the government's commitment to targeting criminals while avoiding unnecessary red tape for legitimate businesses. "We will also make it more difficult for criminals to convert cash to high-risk assets such as cryptocurrencies by banning crypto ATMs," McKee stated. "This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape."

The Financial Intelligence Unit (FIU) will also be granted new powers to demand ongoing information from banks and other reporting entities regarding individuals flagged for suspicious activity. Two AML reform bills are already in parliament and are expected to pass before the end of the year. These bills aim to remove some of the most burdensome compliance requirements, delivering practical relief for businesses by the end of the year. McKee clarified that easing compliance for law-abiding businesses does not mean lowering standards. "This is not about dropping standards, it’s about applying them intelligently," she added.

According to an April report by New Zealand’s Ministerial Advisory Group on Transnational, Serious and Organised Crime, criminals have increasingly relied on crypto ATMs to quickly convert cash into crypto and send it abroad for drug payments or fraud-related transactions. Coin ATM Radar data shows more than 220 crypto kiosks are currently operating across the country.

New Zealand’s crackdown on crypto ATMs aligns with a global trend of increased scrutiny around these machines. Last month, Australia’s financial intelligence agency introduced new rules for crypto ATM operators, including a 5,000 Australian dollar cap on cash deposits and withdrawals, stricter monitoring, and enhanced customer checks, amid rising scam reports. Meanwhile, Spokane, Washington, has announced a complete ban on crypto ATMs, citing their use by fraudsters to target vulnerable residents, particularly in low-income neighborhoods.