New Zealand Cracks Down: Crypto ATMs Face Ban in Anti-Money Laundering Blitz

New Zealand joins the global regulatory scrum with a hammer-blow to crypto's physical gateways. The move targets money laundering—but critics say it's another case of old finance strangling innovation.

Why now? The Financial Markets Authority (FMA) claims crypto ATMs enable 'unregulated cash conversion.' Never mind that fiat banks laundered $2 trillion last year—but sure, blame the shiny new tech.

Industry backlash brews. Local crypto firms argue the ban hurts financial inclusion while doing nothing to stop sophisticated cyber-laundering. 'They're unplugging the wrong machine,' quips a blockchain CEO.

What's next? Watch for underground peer-to-peer markets to flourish. When governments ban convenient on-ramps, decentralized alternatives thrive. The cat-and-mouse game continues.

Will Cryptocurrency Businesses Be Affected?

McKee clarified that the New Zealand government is not trying to create barriers for legitimate businesses. She stated, ““

Apart from banning cryptocurrency ATMs, the country will also put a cap of $5000 (per transfer) on international transactions.

The bill will also enable the Financial Intelligence Unit (FIU) to order banks and other businesses subject to the AML/CFT Act to provide information on persons of interest.

Will The Move Help Combat Financial Crimes?

There is no denying the prevalence of criminal players within the cryptocurrency space. In 2024, about $2.2 billion worth of crypto was stolen in hacks and exploits. The figure represents a 17% increase from 2023.

Illicit players also use cryptocurrencies to escape the legal financial system. A ban on crypto ATMs and a cap on international transfers could hamper criminal enterprises. However, there is also a chance that legitimate businesses will also be affected. How the law pans out is yet to be seen.

McKee further added, ““