New Zealand is enacting strict new measures targeting the use of cryptocurrency in financial crime, including a full ban on crypto ATMs and tighter limits on cross-border cash transfers. The move, announced Wednesday by Associate Justice Minister Nicole McKee, is part of a broader revamp of the country’s anti-money laundering (AML) framework.
With over 220 crypto ATMs scattered across the country, New Zealand now joins a growing list of nations rolling back access to these machines amid concerns they serve as convenient tools for illicit finance. The proposed reforms include giving greater authority to law enforcement, expanding data access for financial intelligence agencies, and introducing a consultation phase for a new funding levy on the AML system.
“This government is committed to cracking down on criminals, not burdening honest businesses,” McKee said.
“We want New Zealand to be a place where clean capital flows easily—and dirty money cannot hide.”
$5K Cap on Cross-Border Cash Transfers to Thwart Criminal Use
One of the key components of the legislative overhaul is a hard cap of $5,000 per international cash transfer. Authorities say this measure is designed to hinder organized crime groups that exploit cash-based transfers and crypto ATMs to move funds across borders without detection.
According to a government-commissioned report released in April, criminal networks frequently use crypto kiosks to swiftly convert cash into digital assets, which are then sent overseas to finance drug shipments or support scam operations. The anonymity and speed of these transactions have made them especially attractive to fraudsters and traffickers.
While the reforms represent a significant tightening of policy, the response from the local fintech and crypto industry has been largely supportive. Many firms see the measures as necessary for establishing a safer and more credible regulatory environment, especially as digital finance continues to mature in the region.
Global Pressure Builds on Crypto ATMs as Fraud Concerns Rise
New Zealand’s action mirrors a rising tide of international scrutiny surrounding crypto ATMs. Regulators around the world have flagged these machines as high-risk points for money laundering and consumer fraud—especially when used by vulnerable populations.
Australia’s financial intelligence unit, AUSTRAC, recently placed crypto ATMs under a watchlist after investigative task forces found alarming patterns in scams targeting the elderly. Meanwhile, in the United States, the city of Spokane, Washington, voted to outlaw the machines entirely following FBI reports that linked them to over $5.6 billion in fraud-related losses during 2024.
Analysts say New Zealand’s move could serve as a model for other jurisdictions looking to modernize their AML frameworks without stifling legitimate innovation. However, the effectiveness of the new rules will depend heavily on enforcement and collaboration with international partners, given the inherently borderless nature of digital assets.
Quick Facts
- New Zealand will ban all crypto ATMs and cap international cash transfers at $5,000.
- The crackdown targets money laundering, drug trafficking, and cross-border scams.
- Over 220 crypto ATMs are currently in use across the country.
- Similar measures are being considered in Australia and the U.S. following high fraud losses.
- The reform includes expanded enforcement powers and funding mechanisms for AML oversight.
