New Zealand Bans Crypto ATMs and Caps Transfers in AML Overhaul

New Zealand has implemented sweeping reforms to its anti-money laundering (AML) and counter-terrorism financing regime, including a ban on cryptocurrency ATMs and a $5,000 cap on international cash transfers. Associate Justice Minister Nicole McKee announced the measures, which aim to curb illicit financial activity while minimizing regulatory burden on legitimate businesses.

The reforms grant expanded surveillance powers to law enforcement, enabling broader financial data collection on persons of interest. A new bill will establish funding mechanisms for the enhanced AML framework through a proposed levy system. "We want New Zealand to be one of the easiest places for legitimate business and one of the hardest for criminals to operate," McKee stated.

Industry leaders have largely supported the move, noting that crypto ATMs often attract users seeking anonymity for questionable transactions. The changes reflect growing global scrutiny of cryptocurrency channels as potential vectors for money laundering, even as digital assets gain mainstream financial adoption.