New Zealand Bans Crypto ATMs Amid Crackdown on Money Laundering

7h ago•

bullish:

bearish:

In a decisive move to strengthen its anti-money laundering framework, New Zealand has announced a nationwide ban on all cryptocurrency ATMs and introduced a $5,000 cap on overseas cash transfers. The government’s objective is clear: eliminate financial loopholes exploited by criminal networks and increase transparency within its financial ecosystem.

New Zealand Bans Crypto ATMs Amid Crackdown on Money Laundering = The Bit Journal

Why Crypto ATMs Are in the Crosshairs

The decision affects all 221 crypto ATMs currently operating across New Zealand. According to the Ministry of Justice, these machines have increasingly been used for illegal transfers due to minimal oversight and sky-high transaction fees—often ranging between 5% and 20%. The lack of robust Know Your Customer (KYC) protocols further exacerbated the problem, making these ATMs a prime vehicle for laundering illicit funds and financing organized crime.

Nicole McKee, New Zealand’s Minister of Justice, emphasized that this reform targets financial crime without penalising legitimate users:

“We are going after the criminals. For honest businesses, this means less bureaucracy. Our goal is to make New Zealand one of the easiest places in the world to do transparent business—and the hardest place to launder dirty money.”

Enhanced Powers and New Reporting Obligations

In addition to the ATM ban, law enforcement agencies including the New Zealand Police and the Financial Intelligence Unit (FIU) will be granted expanded powers. These include access to detailed financial records of individuals flagged as suspicious, even without court orders in certain scenarios.

To fund the enforcement of these new measures, the government also plans to introduce a revised fee and tax model. This signals a long-term commitment to regulatory reform and financial scrutiny.

Industry Reaction: Support for Safer Crypto Environment

Contrary to potential concerns about government overreach, the crypto community in New Zealand has responded positively. Janine Grainger, founder of local platform Easy Crypto, publicly supported the measures:

“This is a great step forward for consumer protection and legal compliance. It doesn’t signal the end of crypto in New Zealand—just the end of unregulated, opaque access.”

The regulation is expected to drive crypto adoption through more secure, compliant platforms that align with international AML standards.

A Global Trend in the Making

New Zealand is not alone in tightening crypto-related regulations. Australia has similarly implemented a $5,000 limit on unverified crypto transactions and revoked several ATM operator licences. Meanwhile, U.S. authorities are also considering full bans in select cities following a wave of ATM-related fraud—amounting to over $5.6 billion in losses in 2024, according to FBI estimates.

These developments underscore a growing global consensus: crypto infrastructure must evolve to meet the same regulatory standards as traditional finance.

Conclusion

While some may see the New Zealand ban as a heavy-handed response, it reflects an international push toward responsible crypto innovation. Transparency, compliance, and security are no longer optional—they’re the baseline for a sustainable digital economy.

References: