New Zealand’s Justice Ministry has announced a decisive move to eliminate cryptocurrency ATMs, aiming to tighten its anti-money laundering and counter-terrorism financing (AML/CFT) measures. This initiative is part of a wider strategy to enhance regulation against financial crimes while minimizing regulatory burdens on legitimate enterprises.
In a statement made on July 9, Associate Justice Minister Hon. Nicole McKee emphasized that the government is keen on introducing new legislation to boost law enforcement and regulatory agencies’ enforcement capabilities. The forthcoming bill will focus on curtailing “serious financial crime” and making it more challenging to transfer funds into the digital economy. McKee highlighted the government’s commitment to targeting criminal activities without encumbering legitimate businesses with unnecessary bureaucracy.
One major aspect of the government’s reform efforts is the prohibition of cryptocurrency ATMs, which are believed to facilitate the conversion of illicit cash into digital currencies, thus abetting money laundering activities. McKee remarked that closing down these facilities would hinder a prevalent method used in laundering money via cryptocurrencies. According to Bitcoin ATM Radar, New Zealand is currently ranked eighth in the world in terms of the number of operating crypto ATMs, with 221 units. The proposed ban is expected to dismantle this network completely.
This move is in line with global actions to limit access to crypto ATMs as part of efforts to combat illicit financial flows. For instance, Germany confiscated $28 million from unauthorized crypto ATMs in 2024, while Australia and several states in the US, such as North Dakota, have implemented stricter regulations to prevent fraud and misuse associated with these machines.
Furthermore, New Zealand is set to impose a $5,000 cap on international cash transfers as part of its efforts to prevent large, undetected offshore money movements by criminal syndicates. The reforms will also see adjustments in specific AML/CFT compliance obligations for legitimate businesses, allowing authorities to focus on entities posing higher risks.
McKee asserts that these changes aim to align New Zealand with international standards and bolster the country’s defenses against financial crimes. The reforms are driven by a need for a more flexible, effective AML/CFT system that can target criminals’ money laundering activities while ensuring that New Zealand businesses can operate efficiently and competitively.
“New Zealand takes a bold step in combating financial crime by banning cryptocurrency ATMs and setting limits on international cash transfers. #AML #CFT #Cryptocurrency #NewZealand”
