New Zealand bans crypto ATMs to combat money laundering
New Zealand bans crypto ATMs in anti-money laundering crackdown
New Zealand has unveiled strict new measures targeting cryptocurrency and cross-border cash flows as part of a sweeping overhaul of its anti-money laundering laws.
Announced on Wednesday by Associate Justice Minister Nicole McKee, the reforms will include a full ban on cryptocurrency ATMs and a $5,000 cap on international cash transfers, reports Cointelegraph.
Officials argue these changes are necessary to disrupt channels used by organized criminals to move illicit funds, particularly in the drug trade and fraud schemes. “We will make it more difficult for criminals to convert cash to high-risk assets such as cryptocurrencies by banning crypto ATMs,” McKee stated, underscoring the government’s hardline stance. The changes are part of a broader update to New Zealand’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework.
Enhanced surveillance and smart regulation for compliance
The reform package also grants new powers to New Zealand’s Financial Intelligence Unit (FIU), allowing it to demand real-time data from financial institutions about individuals under suspicion. Two bills are already in Parliament, expected to pass by the end of the year, that aim to modernize the AML/CFT regime while easing unnecessary regulatory burdens on compliant businesses. McKee emphasized the goal is to strike a balance—ensuring robust enforcement while avoiding undue red tape.
“This is not about dropping standards, it’s about applying them intelligently,” she noted, pointing to the government’s dual approach of targeting criminal behavior while supporting legitimate economic activity. The reforms also respond to findings from an April advisory report highlighting increased criminal use of crypto ATMs to quickly launder money abroad.
Part of a global crackdown on crypto kiosks
New Zealand’s measures align with a global trend of increased scrutiny on crypto ATMs, which authorities increasingly associate with illicit financial flows. Similar steps have been taken in Australia, where financial regulator AUSTRAC recently imposed a $5,000 AUD cap on crypto ATM transactions and mandated more stringent identity checks. Meanwhile, cities like Spokane, Washington, are going even further, enacting outright bans and ordering the removal of existing crypto ATMs due to concerns over scams and exploitation of vulnerable residents. With over 220 crypto kiosks still operating across New Zealand, the ban represents a major shift and could set a precedent for further regulation in the Asia-Pacific region. The move signals New Zealand’s intent to lead in responsible crypto oversight while aligning with international anti-fraud and anti-laundering standards.
Recently we wrote that the United Kingdom is preparing to implement tougher tax regulations targeting individuals and entities attempting to avoid paying taxes on profits from digital assets.
