New Zealand takes strong action against Money Laundering, completely banning Crypto Assets ATMs.

To curb Money Laundering and criminal financing, the New Zealand government is actively reforming its Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) system. One significant measure is the cessation of the use of Crypto Assets ATM machines, and setting the international cash transfer limit at $5,000 per transaction. Deputy Minister of Justice Nicole McKee stated that this reform aims to make New Zealand "one of the hardest places for criminals to hide," while not imposing unnecessary red tape on legitimate businesses.

New Zealand AML Reform: Comprehensive Crackdown on Criminal Financing

The reform measures of the New Zealand government include:

1. Prohibition of Crypto Assets ATM Machines: This is a key measure aimed at the field of crypto assets.

2. International cash transfer limit: Set a cap of 5,000 USD per transaction to directly combat the ability of criminal organizations to transfer funds overseas, while allowing legal transfers through electronic banking channels.

3. Expand Law Enforcement Powers: A new bill will be introduced aimed at expanding the law enforcement powers of the police and regulatory agencies, allowing financial intelligence units to collect a broader range of financial data on relevant individuals and to engage in consultations regarding tax collection to fund the system.

Mackey stated in a statement: "This government is serious about cracking down on criminals and will not bind legitimate businesses with unnecessary red tape. We want New Zealand to be one of the easiest places in the world to conduct legitimate business, while also being one of the hardest places for criminals to hide."

Crypto Assets ATM: A Breeding Ground for Criminal Activities?

A report from the Ministerial Advisory Group on Transnational, Serious and Organized Crime in April found that criminals use these ATMs "to purchase crypto assets and transfer the crypto assets to overseas criminals within minutes to fund drug imports or pay for fraud-related payments."

Industry leaders generally welcomed this crackdown, believing it to be a necessary step towards legitimizing the sector. Janine Grainger, co-founder of New Zealand's crypto assets exchange Easy Crypto, told Decrypt: "For some time now, we have observed a rapid growth of crypto assets ATMs across the country. While we are eager to see the popularization of crypto assets, we also want to support this growth in a way that ensures customer safety and compliance. Therefore, we appreciate this ban."

Granger pointed out that this "marks the maturity of the industry, not its collapse," which is not surprising. She stated that these changes mainly affect "high-risk or marginal scenarios," rather than everyday users, who now prefer "safer, more transparent platforms such as reputable exchanges," instead of crypto ATMs where fees can be as high as 20%.

The founder of the crypto assets exchange Giottus, Arjun Vijay, told Decrypt, "Without sufficient safeguards like KYC, it is inevitable that Bitcoin ATMs face bans in many jurisdictions." He pointed out that these ATMs "usually charge high exchange fees of 5-10%," which makes them "less attractive to cost-conscious users," mainly appealing to those seeking privacy or exchanging illegal crypto assets or cash.

The Growing Attention of the International Community on Crypto ATM

This crackdown was carried out after the international community increasingly focused on the role of crypto ATMs in fraud and money laundering.

Australia: The Australian financial regulator AUSTRAC recently issued a "warning" to the industry, following a working group that pointed out a "worrying trend" in scams targeting the elderly. AUSTRAC refused to renew the registration of the crypto assets ATM operator Harro's Empires and imposed new conditions on other ATM machines, setting a deposit and withdrawal limit of 5,000 AUD per transaction and requiring enhanced customer due diligence.

United States: In the United States, voters in Spokane, Washington, decided to completely ban crypto asset kiosks after data from the FBI showed that fraud losses related to crypto asset kiosks reached $5.6 billion in 2024.

The New Zealand government's ban on Crypto Assets ATM machines and the restriction on international cash transfers is a reflection of the global trend to strengthen AML and combat the financing of crime. Although Crypto Assets ATMs provide convenience to some extent, their abuse in illegal activities has forced regulators to adopt stricter measures. This reform not only helps enhance New Zealand's financial security but also serves as a reference for other countries in the regulation of Crypto Assets.