New Zealand Introduces Ban on Cryptocurrency ATMs to Combat Financial Crime

New Zealand has enacted a new bill prohibiting cryptocurrency ATMs as part of its strategy to tackle money laundering and financial crime. Associate Justice Minister Nicole McKee announced the measure, emphasizing its role in strengthening anti-money laundering (AML) and counter-terrorism financing (CFT) efforts. The ban targets anonymous cash-to-crypto conversions, which authorities argue facilitate illicit transactions.

The legislation also imposes a $5,000 cap on international cryptocurrency transfers and grants expanded surveillance powers to the Financial Intelligence Unit (FIU). Banks and financial institutions will now be required to disclose transaction details for persons of interest. While McKee insists the rules won't hinder legitimate businesses, industry analysts warn the ATM ban could disrupt retail crypto adoption.

Crypto-related crimes remain a global concern, with $2.2 billion stolen through hacks and exploits in 2024 alone—a 17% increase from 2023. The New Zealand government views physical crypto kiosks as particularly vulnerable to abuse, though critics argue sophisticated laundering operations typically use more complex methods than ATM transactions.