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"Authorities in New Zealand Outlaw Nationwide Crypto Automated Teller Machines to Bolster Anti-Money Laundering Regulations"

Digital currency Automated Teller Machines (ATMs) will be prohibited in New Zealand, as part of sweeping amendments aimed at curtailing money laundering risks associated with digital assets.

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New Zealand Imposes Nationwide Prohibition on Crypto ATMs to Enhance Anti-Money Laundering Measures
New Zealand Imposes Nationwide Prohibition on Crypto ATMs to Enhance Anti-Money Laundering Measures

"Authorities in New Zealand Outlaw Nationwide Crypto Automated Teller Machines to Bolster Anti-Money Laundering Regulations"

New Zealand Cracks Down on Cryptocurrency-Related Financial Crime

New Zealand has taken significant strides in addressing cryptocurrency-related financial crime, with key regulatory measures being implemented to combat money laundering and illicit activities. The most notable changes include the ban on cryptocurrency Automated Teller Machines (ATMs) and the capping of international cash transfers at NZD $5,000 [2][4][5].

The ban on crypto ATMs is aimed at making it harder for criminals to facilitate anonymous, untraceable transactions. These kiosks have been identified as primary portals for money laundering, with over 220 such machines currently operating in the country [4]. By prohibiting their use, New Zealand hopes to prevent criminals, such as drug dealers, from quickly converting illicit cash into cryptocurrencies, which can then be transferred overseas anonymously.

Simultaneously, New Zealand has imposed a $5,000 cap on international cash transfers to restrict the ability of criminals to move large sums offshore, making illicit fund transfers harder [2][4][5].

These reforms are led by Associate Justice Minister Nicole McKee and are part of a more agile and targeted Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) framework. The Financial Intelligence Unit (FIU) will gain enhanced powers to demand ongoing information from banks and reporting entities about suspicious activities to improve financial surveillance [4].

In addition to these measures, New Zealand is advancing transparency and tax compliance in the crypto sector through the Taxation Act 2025 and the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF), which impose reporting requirements on crypto asset service providers (CASPs) [1].

The direction of travel is clear, with countries moving towards stricter regulation of crypto-related financial crime. Other countries, such as Singapore, the UK, and Canada, are already tightening regulation around digital asset businesses and putting in place strict controls around anti-money laundering policies [3].

In summary, New Zealand's new policy represents one of the most comprehensive efforts by any country in 2025 to tackle cryptocurrency-related financial crime [1][2][4][5]. The changes aim to balance robust enforcement with reduced burdens on legitimate businesses while fostering innovation and consumer protection through regulatory sandboxes for fintech companies [1].

| Regulatory Measure | Purpose | Details | |----------------------------------|-------------------------------------------------|-----------------------------------------------------------------------| | Ban on crypto ATMs | Prevent money laundering and illicit cash conversion | Prohibits over 220 crypto kiosks used for rapid cash-to-crypto swaps | | $5,000 cap on international cash transfers | Limit offshore illicit money flows | Caps transfers to curb large-scale money laundering | | Expanded FIU powers | Enhance financial surveillance | Allows ongoing demands for info on suspicious individuals | | OECD CARF via Taxation Act 2025 | Increase transparency and tax compliance | Reporting obligations for crypto asset service providers | | Regulatory sandbox for fintech | Promote innovation with oversight | Allows testing of new blockchain/crypto products |

These updates could serve as a model for other Asia-Pacific countries facing similar tensions between innovation and risk control. Meanwhile, Australia, which had over 1,600 crypto ATMs as of early 2025 compared to just 23 in 2019, has not outright banned firms but has introduced new rules that make it harder for companies to comply with anti-money laundering regulations [3]. South Korea is also considering opening its crypto market to foreign investors amid AML challenges [3].

  1. New Zealand has implemented significant regulatory measures in the crypto sector, with a primary focus on combating money laundering and illicit activities.
  2. The ban on cryptocurrency ATMs aims to make it harder for criminals to facilitate anonymous, untraceable transactions, as these kiosks have been identified as primary portals for money laundering.
  3. Apart from the ban, New Zealand has imposed a $5,000 cap on international cash transfers to restrict the ability of criminals to move large sums offshore.
  4. The new policies are led by Associate Justice Minister Nicole McKee and are part of a more agile and targeted Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) framework.
  5. The Financial Intelligence Unit (FIU) will gain enhanced powers to demand ongoing information from banks and reporting entities about suspicious activities to improve financial surveillance.
  6. The Taxation Act 2025 and the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF) are designed to increase transparency and tax compliance in the crypto sector.
  7. As other countries move towards stricter regulation of crypto-related financial crime, New Zealand's new policy may serve as a model for Asia-Pacific countries facing similar tensions between innovation and risk control, such as Australia and South Korea.

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