New Zealand Bans Crypto ATMs, Imposes $5K Transfer Cap in AML Overhaul

New Zealand has enacted stringent anti-money laundering measures, including a nationwide prohibition on cryptocurrency ATMs and a $5,000 limit on international cash transfers. Associate Justice Minister Nicole McKee announced the reforms as part of a broader update to the country's AML/CFT framework.

Law enforcement officials identified crypto ATMs as a critical vulnerability, with 157 machines allegedly facilitating untraceable drug money laundering. The new regulations expand police powers while attempting to streamline compliance for low-risk financial actors.

The MOVE reflects global concerns about digital assets' role in financial crimes, though no specific cryptocurrencies were named in the legislation. Market observers note such regulatory actions typically create short-term volatility before markets adapt to new compliance realities.