New Zealand Bans Crypto ATMs Amid Anti-Money Laundering Reforms

In an effort to fight against financial crime, the New Zealand government has decided to ban all cryptocurrency ATMS in the country. Along with closing the ATMS operating in the country, they have also introduced a NZD 5,000 cap on international cash transfers. All of these measures are being taken to boost the country’s Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) framework and reduce illegal financial activity.

New Zealand Bans Crypto ATMs

The man behind these efforts is Deputy Justice Minister Nicole McKee. She announced the decision about ATMs on Tuesday and highlighted the need for stronger oversight over financial technologies that criminals most exploit. The authorities in the country have raised their concerns over 221 ATMs across New Zealand, all of which have been reportedly used to funnel proceeds from drug trafficking and other illegal enterprises abroad.

“This government wants to go after criminals with determination. Our aim is to make New Zealand the easiest place in the world to do legitimate business and the hardest place in the world for criminals,” McKee stated.

The reform package also grants expanded powers to police, financial regulators, and intelligence agencies, allowing broader access to financial data for investigations. A funding plan to support the enhanced enforcement is currently under discussion.

While some critics may see the ban as restrictive, leaders within the crypto space have welcomed it as a move toward industry maturity and regulatory clarity.

Janine Grainger, co-founder of local trading platform Easy Crypto, expressed support for the decision. “We’ve been watching the rapid proliferation of crypto ATMs, but we want this growth to proceed safely and compliantly. That’s why we support the ban,” she said.

Grainger also pointed out that the high fee, sometimes reaching 20%, has already deterred many users from utilizing these machines.

Echoing similar sentiments, Arjun Vijay, founder of Giottus crypto exchange, emphasized the importance of identity verification in preventing misuse. New Zealand’s crackdown mirrors a growing international concern over the use of crypto kiosks for unlawful activities. Australia’s financial watchdog, AUSTRAC, has increased surveillance of the sector due to a spike in scams, particularly targeting older citizens. Meanwhile, the U.S. city of Spokane imposed a total ban after FBI investigations linked crypto kiosks to $5.6 billion in fraud last year.

Authorities and industry players alike agree that the ban marks not a regression for digital assets, but a step toward a safer, more compliant future.