New Zealand Cracks Down: Crypto ATMs Axed in Sweeping Anti-Money Laundering Overhaul

New Zealand slams the brakes on crypto's wild west era—physical Bitcoin kiosks are now contraband.

Regulators just flipped the kill switch on every crypto ATM nationwide. No grace period, no grandfather clauses—just a blanket ban effective immediately.

The Financial Markets Authority claims this 'surgical strike' will choke off illicit flows. Critics counter that criminals already migrated to privacy coins years ago.

Funny how these crackdowns always hit Main Street access first—while the hedge funds keep their OTC desks. Priorities, right?

TLDR

• New Zealand has officially banned all crypto ATMs to prevent financial crimes linked to digital assets.
• The government has introduced a $5,000 limit on international cash transfers to strengthen its anti-money laundering efforts.
• Over 221 crypto ATMs across the country will be removed under the new regulatory framework.
• The Financial Intelligence Unit will receive expanded powers to monitor financial activity and track persons of interest.
• A new levy is being considered to support the enforcement of the updated financial crime prevention regime.

New Zealand has banned crypto ATMs and imposed strict limits on international cash transfers. The government aims to curb financial crime and prevent the misuse of digital financial infrastructure by organized criminal networks. This move is part of a larger overhaul of the country’s anti-money laundering and counter-terrorism financing system.

The new measures target financial crime channels that have grown alongside digital currency adoption. Officials stated that enforcement will prioritize illicit behavior while minimizing compliance burdens for lawful businesses. Lawmakers have also outlined steps to increase oversight through enhanced data collection and stricter transaction reporting.

The reform follows mounting evidence showing that crypto ATMs were being used to transfer illicit funds beyond regulatory reach. Investigations revealed that these machines allowed criminals to bypass standard banking checks and MOVE funds swiftly offshore. The government responded by committing to stronger monitoring tools and decisive enforcement.

Crypto ATMs Banned Across New Zealand

The Associate Justice Minister confirmed the shutdown of over 221 crypto ATMs currently operating nationwide. Authorities cited criminal exploitation of these machines, which helped individuals shift funds without traditional banking scrutiny. The machines provided fast access to crypto, making them attractive to fraud networks.

With the ban now in effect, all crypto ATMs in New Zealand will cease operations under new compliance mandates. Regulators will coordinate with local businesses to remove the machines while ensuring the process remains orderly. Compliance teams have already begun mapping out affected locations to assist with enforcement.

The Financial Intelligence Unit will lead monitoring efforts, using updated tools to track suspicious transactions across digital platforms. Expanded powers will enable faster responses and improved cooperation with law enforcement agencies. A proposed levy will help fund these regulatory enhancements, and public consultation is currently underway.

International Cash Transfers Now Capped

Alongside the crypto ATMs ban, the government has capped international cash transfers at $5,000 per transaction. Officials noted this measure was necessary to restrict cash-based cross-border movements linked to money laundering and terrorist financing. This cap is designed to close existing gaps in the AML framework.

The transfer cap aligns with global financial standards while addressing specific vulnerabilities identified by recent reports. Enforcement agencies will now monitor international flows more closely and flag transactions that breach the new threshold. Businesses conducting international cash transfers must now register under the revised policy.

These actions reflect a broader shift towards stricter digital finance oversight in New Zealand. The reforms follow similar moves in the US, Australia, and Europe, where authorities are also targeting crypto ATMs. As crypto use grows, regulators worldwide are responding with stronger frameworks to limit illegal financial activities.