New Zealand to Ban Crypto ATMs and Limit Cash Transfers Abroad

The New Zealand government is introducing a ban on cryptocurrency ATMs and capping international cash transfers at $5.000 per transaction. The new measures are aimed at combating money laundering and criminal financing. The proposed legislation will expand the powers of police and regulators and initiate a discussion on a new levy to support the country’s anti-crime system.

New Phase of AML Regulation

Justice Minister Nicole McKee has introduced an updated anti-money laundering (AML) and counter-terrorism financing (CTFT) strategy. As part of the reform, the Financial Intelligence Unit will be authorized to collect a broader range of data on suspicious individuals. A special levy is also under discussion to help fund the oversight infrastructure.

McKee emphasized that the goal is not to burden legitimate businesses but to cut off opportunities for criminal actors.

Strict Limit on Transfers and Ban on Crypto ATMs

One of the key steps is the introduction of a hard cap on cash transfers abroad. The new threshold is set at $5.000 per transaction. Authorities believe this will restrict the outflow of funds by criminal networks without hindering legal banking operations.

The second major measure is a full ban on the use of cryptocurrency ATMs within the country. An April report by the Ministerial Group on Transnational Organized Crime stated that these machines can be used to send money overseas in minutes and pay for drug trafficking or fraud. According to Coin ATM Radar, more than 221 crypto ATMs are currently installed in New Zealand.

Industry Supports the Reform

Janine Grainger, co-founder of the crypto platform Easy Crypto, told Decrypt that the ban is a mature step for the market. According to her, the move was not unexpected and primarily targets high-risk scenarios rather than everyday users.

Grainger added that more customers are turning to licensed exchanges with transparent conditions instead of crypto ATMs, which often charge fees of up to 20%.

Arjun Vijay, founder of the crypto exchange Giottus, noted that such measures were inevitable. The lack of mandatory KYC verification made crypto ATMs vulnerable and attracted users looking to conceal transactions or cash out illegal assets. He also pointed out that transaction fees on these machines typically range from 5% to 10%, making them unattractive to cost-conscious users.

Global Crackdown

The pressure on crypto ATMs is growing globally. Earlier, Australia’s financial regulator AUSTRAC warned the sector about rising scams, particularly targeting older customers. In the United States, the city of Spokane, Washington, completely banned the installation of crypto kiosks after an FBI report revealed that $5.6 billion had been stolen through such machines in 2024.

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