New Zealand announces crypto ATM ban in push to combat financial crime

New Zealand will ban cryptocurrency ATMs and limit international cash transfers to $5,000 as part of new anti-money laundering reforms. According to Associate Justice Minister Nicole McKee, the reforms, unveiled on July 9, will “target criminals” by restricting their ability to convert large volumes of illgotten cash into crypto through virtual currency kiosks. In this regard, New Zealand will introduce a bill to enhance enforcement powers for police and regulators and to expand the capabilities of the Financial Intelligence Unit in tracking financial activity linked to persons of interest. “We want New Zealand to be one of the easiest places in the world to do legitimate business and one of the hardest for criminals to hide,” McKee said, adding that the overhaul would cut unnecessary red tape for low-risk entities while allowing regulators to focus their efforts on serious financial threats. Meanwhile, by capping international cash transfers to $5,000, regulators hope to limit how criminal groups move illicit funds offshore while preserving legitimate remittance options through electronic bank channels. You might also like: Crypto ATMs banned in Washington’s Spokane city as scam losses mount Authorities maintain that strengthening the AML/CFT framework is central to reducing the misuse of cryptocurrencies and cross-border cash flows. As of press time, New Zealand authorities have not provided a timeline for when these new measures would be enforced. Crypto ATMS, which enable cash purchases of digital currencies, have been identified as a key laundering tool in multiple reports. A 2024 report from New Zealand’s Ministerial Advisory Group on Transnational, Serious and Organised Crime found that criminals used these kiosks to send funds abroad “within minutes” to finance drug imports and scams. Concern over the misuse of crypto kiosks has been mounting among regulators worldwide. An FBI report linked crypto ATMs to $246 million in fraud-related losses across the U.S. in 2024, with over 11,000 complaints. Last month, Spokane, Washington, became the first city in the state to enact a full ban , giving operators 60 days to remove over 40 kiosks following a rise in fraud complaints. Officials said scammers frequently impersonated police or tax authorities to pressure victims into using the machines to transfer funds. Similarly, Nebraska passed the Controllable Electronic Record Fraud Prevention Act earlier this year, mandating state licensing for ATM operators, capping fees at 18%, and setting daily limits of $2,000 for new users. It also introduced mandates for kiosk operators to refund requirements for defrauded customers who report scams within 90 days. Australia’s financial intelligence agency, AUSTRAC, also moved to tighten oversight in June 2025, imposing a 5,000 Australian dollar cash cap per transaction, mandatory scam warnings, and enhanced customer due diligence obligations. Read more: Crypto ATM operators in Australia hit with cash limits and tougher compliance checks