New Zealand has announced a comprehensive suite of reforms aimed at reinforcing its measures against financial crime, which includes an outright ban on cryptocurrency ATMs and a limit of $5,000 on international cash transfers.
Important Highlights:
New Zealand imposes a ban on cryptocurrency ATMs and caps international cash transfers at $5,000.
Authorities have identified cryptocurrency ATMs as tools for laundering drug-related finances through untraceable transactions.
The reforms are designed to enhance law enforcement capabilities while reducing bureaucratic barriers for low-risk users.
These measures were unveiled on Wednesday by Associate Justice Minister Nicole McKee and are part of a broader reform to New Zealand’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework.
Officials state that these changes are necessary to adapt to a rapidly changing financial environment and address the increasingly sophisticated methods used by criminal organizations to exploit digital finance.
Concerns Raised Over Crypto ATMs
New Zealand’s law enforcement agencies have flagged cryptocurrency ATMs as a significant avenue for laundering drug proceeds.
A recent assessment revealed that there are 157 of these machines operating throughout the country, prompting serious concerns over their potential for facilitating transactions that evade regulation.
“Since 2019, the global financial and regulatory landscape has transformed dramatically,” McKee remarked.
“We need a more intelligent, agile AML/CFT system that targets criminals’ ability to launder money while allowing New Zealand businesses to function efficiently and competitively.”
The reforms also introduce a $5,000 limit on outbound cash transfers intended to seal another common route used by illicit actors for moving capital offshore.
In a related effort, the government is preparing a bill that will enhance the enforcement powers of police and regulatory bodies.
Notable among the prospective changes, the Financial Intelligence Unit will gain updated authority to gather crucial data important for crime prevention efforts.
New Zealand has banned crypto ATMs and imposed a $5,000 limit on cash transfers as part of new measures to combat money laundering. pic.twitter.com/yzd0VxMWN0
— Ajay Kashyap (@EverythingAjay) July 9, 2025
The administration is also looking to create a new supervisory entity specifically tasked with overseeing financial sanctions and ensuring the adequacy of funding for AML compliance.
While the government aims to increase regulatory scrutiny, officials emphasize that the reforms are crafted to protect compliant businesses from unnecessary penalties.
Two amendments currently under consideration aim to simplify requirements for lower-risk entities and alleviate the burdensome processes faced by everyday customers.
International Trends in Crypto ATM Regulation
New Zealand’s actions align with initiatives seen in other parts of the world. In Australia, AUSTRAC has recently rolled out stricter regulations for cryptocurrency ATM operators, which include reduced cash limits and enhanced monitoring requirements.
Last month, AUSTRAC declined to renew the registration of a local crypto ATM provider, Harro’s Empires, imposing operational conditions such as transaction limits.
In the United States, Spokane, Washington, has completely banned cryptocurrency ATMs due to their involvement in scams targeting susceptible residents.
On the legislative front, US senators are also working to reinforce laws at state and local levels. A notable effort is being pushed by Illinois Senator Dick Durbin through the introduction of the Crypto ATM Fraud Prevention Act, which would establish regulatory measures aimed at safeguarding the public while minimizing inconveniences for law-abiding users.
The proposed measures would cap user transactions at $2,000 per day, allowing for up to $10,000 within a two-week period. Additionally, operators would be required to engage in detailed discussions with new users attempting to complete transactions over $500. Importantly, users who file a police report within 30 days would also be entitled to refunds.
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