Key Takeaways:
- Crypto ATMs to be completely banned in New Zealand as part of sweeping reforms targeting money laundering risks tied to digital assets.
- International cash transfers now capped at NZD $5,000 per transaction to prevent illicit offshore fund movement.
- New enforcement powers granted to police and regulators, enabling broader surveillance and data requests from crypto-related businesses.
New Zealand has made a bold move in its regulatory landscape, sending a clear message to the global crypto community: the country is closing gaps that enable financial crime, starting with a nationwide ban on cryptocurrency ATMs. The decision is part of a broader reform of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) framework, which aims to make it harder for criminals to exploit digital assets while easing unnecessary burdens on legitimate businesses.
Crypto ATMs Face Total Shutdown in New Zealand
Crypto ATMs — contraptions enabling the purchase or sale of digital assets for hard cash — have been blacklisted internationally as high-risk under pinners of money laundering. They have come under growing scrutiny by regulators because they can be used to facilitate anonymous, untraceable transactions. Now, New Zealand is adopting what may be the region’s most aggressive stance to date by banning them outright.
The measure, which was announced Wednesday by Associate Justice Minister Nicole McKee, would make the nation a leader among its neighbors like Australia, where crypto ATM numbers have steadily grown in recent years. According to data from Bitcoin. com, there were more than 1,600 crypto ATMs in Australia as of early 2025, compared to just 23 in 2019. Australian regulators have introduced new rules that make it harder for companies to comply, but they have not outright banned firms, instead increasing scrutiny.
By contrast, McKee was keen to stress that New Zealand’s ban is specifically targeted at the scourge of anonymity-enabled money laundering, not a shackling of crypto innovation. “We are targeting criminals, not tying up legitimate businesses in unnecessary red tape,” she said in an official statement.
Read More: Australia Clamps Down on Crypto ATM Operators for AML Compliance
Capping Cross-Border Cash Transfers and Expanding Oversight
Asides the ATM ban, the New Zealand Cabinet has sanctioned a cap of NZD$5,000 for international cash transfers. This measure aims to make it harder for organized criminals to take the proceeds of crime out of the jurisdiction, which is a common feature of more complex laundering operations.
Additionally, powers of the Financial Intelligence Unit (FIU) have been enhanced under the AML/CFT Act. The unit can now ask for constant data from banks, crypto exchanges, and other monitored parties on persons of interest, including related financial activity. This will allow intelligence in the fight against money laundering to be built more vigorously.
For crypto companies, that could mean greater data-sharing requirements — especially around transaction monitoring, source-of-funds checks and customer profiling.
A Dual-Track Approach: Tough on Crime, Easy on Business
While the government is tightening its grip on high-risk activities, it’s simultaneously cutting back regulatory friction for low-risk businesses. Two amendment bills are already before Parliament, aimed at removing some of the most burdensome compliance requirements.
Proposed changes include:
- Removing address verification for many low-risk customers
- Relaxing due diligence obligations for low-risk trusts
- Simplifying reporting for small entities with limited exposure to financial crime
The reforms were developed in consultation with industry stakeholders, who have complained about the so-called compliance fatigue for years. McKee emphasized that the policies are not about lowering standards, they’re about making a smart redistribution of regulatory resources on where the risk really resides.
New Zealand Leads Regional Crackdown on Crypto-Related Financial Crime
New Zealand’s new policy could be a model for other Asia-Pacific countries that face similar tensions between innovation and risk control. Given that international watchdogs such as the FATF (Financial Action Task Force) are putting pressure on nations to close the loopholes in these crypto transactions, this move from New Zealand is likely to be emulated as an example of aspirational governance.
Countries are already tightening regulation around digital asset businesses (Singapore, UK, Canada) and putting in place strict controls around anti-money laundering policies. The direction of travel is clear –– and it only just shifted up a gear in New Zealand.
Read More: South Korea Eyes Opening Crypto Market to Foreign Investors Amid AML Challenges
The post New Zealand Bans Crypto ATMs Nationwide to Strengthen AML Enforcement appeared first on CryptoNinjas.
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