New Zealand Targeting Crypto or Criminals? Introduces Ban on Crypto ATMs

New Zealand has announced a complete ban on crypto ATMs, aiming to crack down on crypto-linked financial crime. Also, the government introduced a cap of $5,000 on international cash transfers as part of a broader reform of its AML and anti-terrorism financing framework.

Associate Justice Minister Nicole McKee announced the reforms on June 9, promising to focus enforcement on criminal networks without burdening legitimate businesses.

“We want New Zealand to be one of the easiest places in the world to do legitimate business and one of the hardest for criminals to hide,” McKee said.

221 ATMs in New Zealand to go Offline

The legislation will also expand the powers of police and regulators, giving the Financial Intelligence Unit more authority to monitor financial behavior and gather data on persons of interest. A levy to fund the new regime is also under consultation.

New Zealand government has announced a nationwide ban on cryptocurrency ATMs and set a $5,000 cap on international cash transfers as part of a new round of anti-money laundering (AML) reforms aimed at combating money laundering and illicit fund flows. https://t.co/FXbwxtFM8P

— Wu Blockchain (@WuBlockchain) July 9, 2025

The policy tightening follows an April report from the Ministerial Advisory Group on Transnational, Serious and Organised Crime, which revealed that crypto ATMs were being exploited by criminals to quickly move funds offshore.

According to Coin ATM Radar, New Zealand currently hosts over 221 crypto ATMs. These machines will now be shut down as regulators attempt to plug loopholes exploited by bad actors.

A Global Trend of Caution

In the US, Spokane, Washington, became the first city in the state to ban virtual currency kiosks after a unanimous City Council vote earlier in June. The city ordered the removal of all crypto ATMs, estimated to number around 50, within 60 days, citing a wave of scams affecting vulnerable residents.

Crypto ATMs “have become a preferred tool for scammers looking to defraud unsuspecting victims,” said Council Member Paul Dillon, who introduced the measure.

Many of the machines, he noted, were concentrated in low-income neighborhoods and convenience stores, making them an easy target for financial abuse.

Australia is also tightening the leash. In March 2025, AUSTRAC, the country’s financial crimes watchdog, warned crypto ATM providers to improve compliance after uncovering troubling patterns of fraud and money laundering.

Even in Europe, the pressure is mounting with Austria-based Kurant, the continent’s largest crypto ATM operator, suspending services in Germany from July 1 as it awaits licensing under the European Union’s upcoming Markets in Crypto Assets (MiCA) regulation.

Over half of Kurant’s 300+ machines are based in Germany, meaning most of the country’s Bitcoin ATMs are now offline.

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