New Zealand Moves to Ban Crypto ATMs in Anti-Money Laundering Crackdown

robot
Abstract generation in progress

New Zealand’s government plans to outlaw crypto ATMs and limit cash transfers overseas, saying criminals are using them to move funds quickly and anonymously.

New Zealand is set to ban cryptocurrency ATMs as part of a major crackdown on money laundering and financial crime.

The initiative is part of a broader reform of the country’s anti-money laundering and counter-terrorism financing (AML/CFT) laws.

Why Crypto ATMs Are in the Crosshairs

Crypto ATMs allow users to insert cash or swipe a bank card in exchange for cryptocurrency, which can then be transferred instantly, often to offshore wallets.

Authorities say these machines are being misused. Scammers advertise fake products online, then ask buyers to send cryptocurrency through ATMs. Once the payment is made, the scammer disappears.

According to an April report from the Ministerial Advisory Group on Transnational, Serious, and Organised Crime, crypto ATMs have been exploited to purchase cryptocurrency. The funds are then transferred within minutes to offshore criminals, facilitating drug imports or scams.

New Limits on Cash Transfers

The government also wants to cap international cash transfers at NZ$5,000 (about US$3,000). This is intended to make it more difficult for criminals to send money overseas.

The Cabinet has introduced a new bill to expand police powers and strengthen oversight. Regulators will be empowered to take more aggressive action against individuals using the financial system for illicit activities.

Global Scrutiny on Crypto ATMs

New Zealand’s proposed crackdown mirrors growing international concern over the vulnerability of crypto ATMs to abuse. Neighboring Australia has stepped up oversight of the sector, with its financial watchdog, AUSTRAC, placing it “on notice” after a taskforce identified scams, particularly targeting the elderly.

In the U.S., Spokane, Washington, banned crypto kiosks entirely following an FBI report revealing $5.6 billion in fraud losses in 2024 linked to these machines.

Crypto ATM Growth Raises Red Flags

According to Coin ATM Radar, there are around 38,500 crypto ATMs globally. Over 30,000 are in the United States. New Zealand currently has 221.

McKee said the country’s new approach aims to deliver more clarity for businesses while maintaining the safety of the financial system. The crypto ATM ban, she noted, is a key part of that strategy.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)