- New Zealand will ban crypto ATMs to close a major loophole for money laundering and terrorist financing, says Associate Justice Minister Nicole McKee.
- The new AML overhaul also caps international cash transfers at NZ$5,000, aiming to make it harder for criminals to move cash into crypto.
- NZ’s move mirrors wider global scrutiny, with other regions like Spokane and Australia also tightening rules or outright restricting crypto ATMs.
New Zealand is cracking down on crypto ATMs, targeting what the government calls a “critical weak point” in its battle against money laundering and terrorist financing.
According to a Wednesday announcement by Associate Justice Minister Nicole McKee, the government will outright ban cryptocurrency ATMs in its effort to overhaul the nation’s anti-money laundering (AML) framework, hoping to discourage criminals from turning cash into crypto, making money harder to track.
We will also make it more difficult for criminals to convert cash to high-risk assets such as crypto currencies by banning crypto ATMs.
That revamp refers to a new legislation introduced to Parliament that aims to give regulators and police stronger tools to root out financial crime. According to McKee, this new approach will:
… Deliver more clarity and consistency for businesses while maintaining a strong focus on preventing criminal misuse of the financial system (…)
Hon Nicole McKee, Associate Justice MinisterRelated: Bitcoin Bulls Battle Boring Markets as Analyst Eyes $120K Short-Term Target
There’s also a new limit to international cash transfers: a maximum NZ$5,000, which would be around US$3K (and AU$4.5K).
The Increase in Crypto ATM Scams Worldwide
According to Coin ATM Radar, New Zealand currently has 221 crypto ATMs. This contrasts sharply with the global leader, the United States, home to more than 30,000 of these machines. In Australia, crypto ATM machines went from just 23 to over 1,800 today.
All in all, there seems to be rising scrutiny towards crypto ATMs worldwide. For instance, Washington’s second-largest city, Spokane, banned crypto ATMs following an anonymous vote.
Similarly, Australia’s financial watchdog, AUSTRAC, tightened its rules surrounding crypto ATMs, imposing a AU$5,000 limit on cash deposits and withdrawals, among other rules and security warnings.
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