New Zealand Bans Crypto ATMs, Caps International Cash Transfers in Crime Crackdown
New Zealand will ban cryptocurrency ATMs and limit international cash transfers to $5,000 under new legislation aimed at curbing money laundering and organized crime, the government announced in a recent disclosure. The reforms are part of a broader effort to strengthen the country’s anti-money laundering and counter-terrorism financing framework, with proposed changes to expand enforcement powers and increase financial oversight. Tightening Financial Controls Associate Justice Minister Nicole McKee said the proposed legislation, expected to be introduced in the coming months, would give police and regulators greater authority to investigate financial crimes and track suspicious activity. Under the planned changes, the Financial Intelligence Unit (FIU) will be granted access to broader financial data involving persons of interest. The government will also begin consultations on a potential levy to help fund the regulatory regime. “This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape. 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 in a written statement. Crypto ATMs Under Scrutiny A major feature of the reforms is the removal of all crypto ATMs across the country. New Zealand currently hosts over 220 such machines, according to data from Coin ATM Radar. The decision follows findings from an April report by the Ministerial Advisory Group on Transnational, Serious and Organised Crime, which concluded that crypto ATMs have been exploited to quickly convert cash into digital assets and move funds overseas within minutes, often to facilitate drug trafficking or scams. McKee said removing these machines would directly cut off a common method used by criminal networks to bypass conventional financial scrutiny. Mixed Industry Response While some critics may view the measures as heavy-handed, key voices in New Zealand’s cryptocurrency sector have voiced support for the changes. Janine Grainger, co-founder of crypto platform Easy Crypto, said the industry must balance growth with consumer safety and legal compliance. The government has not yet provided a timeline for full implementation, but indicated that public consultation and legislative processes will begin in the coming months.
