Farewell, Crypto ATMs: New Zealand Tightens Reins on Digital Cash New Zealand is implementing significant reforms to combat money laundering and criminal financing, which include banning crypto ATMs and setting a $5,000 cap on international cash transfers.

Associate Justice Minister Nicole McKee announced these changes, stating that a new bill will be introduced to enhance enforcement powers for police and regulators and allow broader financial data collection. The government aims to make New Zealand a difficult place for criminals to operate while reducing red tape for legitimate businesses.

The ban on crypto ATMs comes after reports highlighted their use by criminals to quickly move funds offshore for illicit activities like drug imports and scams. Industry leaders, such as Janine Grainger of Easy Crypto, have welcomed the ban, viewing it as a sign of the crypto sector's maturation and a necessary step for safety and compliance. Similarly, Arjun Vijay of Giottus noted the inevitability of such bans given the lack of KYC (Know Your Customer) safeguards and high fees associated with these machines, which often attract users seeking anonymity or to convert illicit funds.

The reforms also establish a $5,000 limit for international cash transfers, specifically targeting criminal organizations' ability to move money discreetly, while electronic bank transfers remain unaffected for legitimate purposes. This crackdown aligns with growing international concerns, as seen in Australia's financial watchdog placing crypto ATMs "on notice" and Spokane, Washington, banning them due to significant fraud losses. Reference: "New Zealand to Ban Crypto ATMs, Cap Transfers in AML Regime Shake-Up." (2025, July 9). Decrypt. #CRYPTOATM #NewZealand