New Zealand to Ban Crypto ATMs in Crackdown on Money Laundering

New Zealand will prohibit cryptocurrency automated teller machines (ATMs) and cap international cash transfers at NZ$5,000, Associate Justice Minister Nicole McKee announced. The move targets 221 operational crypto kiosks, which must be removed once the ban takes effect.

The measure aims to disrupt money laundering and organized financial crime by making it harder to convert cash into high-risk crypto assets. "This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape," McKee stated. Crypto ATMs, which function like traditional ATMs but facilitate cash-to-crypto conversions, often carry steep transaction fees.

New Zealand follows Australia's recent imposition of a AU$5,000 limit on crypto ATM transactions. Australian regulators have also enhanced customer verification, scam warnings, and transaction monitoring after identifying seniors as frequent users of these services.