New Zealand has introduced a ban on cryptocurrency ATMs and set a $5,000 cap on international cash transfers as part of a broader initiative to combat money laundering and organized financial crime.
Announced on Wednesday by Associate Justice Minister Nicole McKee, the new measures are part of the government’s overhaul of its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework.
The updated regulations aim to close off channels commonly exploited by criminals to move illicit funds. Among the key changes: a complete ban on crypto ATMs and tighter controls on cross-border cash flows.
“We’re making it harder for criminals to convert cash into high-risk assets like cryptocurrencies by banning crypto ATMs,” McKee said in a statement. “This Government is focused on hitting criminal networks—without burdening legitimate businesses with unnecessary red tape.”
New Zealand Set to Strengthen Financial Oversight
New Zealand’s Financial Intelligence Unit (FIU) will soon gain expanded authority to request ongoing information from banks and other reporting entities about individuals flagged for suspicious activity.
Two bills aimed at reforming the country’s anti-money laundering (AML) laws are already before parliament and are expected to pass by the end of the year. Associate Justice Minister Nicole McKee said the reforms will reduce some of the most burdensome compliance obligations, offering “practical relief for businesses by the end of the year.”
However, McKee emphasized that streamlining compliance does not equate to weakening oversight. “This is not about dropping standards—it’s about applying them intelligently,” she said.
An April report from New Zealand’s Ministerial Advisory Group on Transnational, Serious and Organised Crime highlighted a growing trend of criminals using crypto ATMs to rapidly convert cash into cryptocurrency, which is then sent overseas for illicit transactions such as drug payments and fraud.
According to data from Coin ATM Radar, more than 220 cryptocurrency kiosks are currently operating across New Zealand.
Worldwide Clampdown on Crypto ATMs
New Zealand’s move to ban crypto ATMs aligns with a growing global trend of increased scrutiny on these machines.
In June, Australia’s financial intelligence agency, AUSTRAC, implemented new regulations for crypto ATM operators, including a AU$5,000 (US$3,250) cap on cash deposits and withdrawals, enhanced customer verification, and stricter monitoring requirements, in response to a surge in scam-related activity.
In the United States, Spokane, Washington, has taken even stronger action, announcing a full ban on crypto ATMs. The city council plans to remove all existing kiosks and prohibit the installation of new ones, citing concerns that the machines are frequently used by scammers to exploit vulnerable residents, especially in low-income areas.
