New Zealand has enacted a ban on cryptocurrency ATMs to prevent money laundering and enhance financial crime control.
The government aims to limit the conversion of cash into illegal cryptocurrency assets while balancing crime prevention and facilitating legitimate business operations.
MAIN CONTENT
New Zealand bans cryptocurrency ATMs to prevent money laundering and control cash transactions.
The government imposes a limit of $5,000 on international money transfers to curb criminal behavior.
A measure to balance financial crime control and reduce the burden on legitimate businesses.
What decision has New Zealand made regarding cryptocurrency ATMs in anti-money laundering legislation?
According to Minister of Justice Nicole McKee, the New Zealand government has decided to ban cryptocurrency ATMs to prevent money laundering through illegal conversion of cash to cryptocurrency.
The government commits to "focusing on criminal targets rather than creating difficulties for legitimate businesses while enhancing enforcement powers to effectively prevent money laundering activities."
Nicole McKee, Minister of Justice, July 2025
The new law will allow authorities to tightly control the conversion of cash into cryptocurrency assets while expanding the right to request information from banks and related businesses. Additionally, a monitoring regime for new financial sanction measures will also be implemented to support effective enforcement.
How does the international money transfer limit policy affect financial activities in New Zealand?
The government imposes a maximum limit of $5,000 for each international money transfer through cash channels to reduce the ability of criminal organizations to illegally transfer money abroad.
This limit applies to all international money transfer services in New Zealand, contributing to tightening illegal financial activities, protecting the national financial system, and enhancing the effectiveness of detecting criminal activities.
How does New Zealand balance crime prevention and support for legitimate businesses?
According to Minister Nicole McKee, the amended policy will ease complex verification requirements for low-risk customers, such as eliminating address verification and streamlining procedures for low-risk trust organizations.
Two amendment projects are under consideration by Parliament to reduce unnecessary compliance pressure on businesses, creating a favorable environment for them to focus resources on real risks rather than paperwork.
"We aim for an intelligent, flexible AML/CFT system that effectively controls crime while providing a competitive advantage for legitimate businesses."
Nicole McKee, Minister of Justice, press conference July 2025
Why does New Zealand ban cryptocurrency ATMs while the global network is expanding?
Currently, there are 38,537 cryptocurrency ATMs operating in 67 countries, allowing users without banking relationships to conveniently exchange between cash and cryptocurrency. However, New Zealand has chosen a different path to completely prevent the risk of money laundering through this method.
Global cryptocurrency ATMs are often regulated under local AML laws, with varying transaction limits and KYC procedures, but the New Zealand government is concerned that these machines could become an effective money laundering channel.
Source: Coin ATM Radar
How effective are the New Zealand government's regulations related to cryptocurrency and finance?
New Zealand does not yet consider cryptocurrency a financial product but has introduced broader regulations in fintech and anti-money laundering, recognizing digital assets as taxable property.
The 2025 Tax Law applies a reporting framework for cryptocurrency assets according to OECD standards, requiring cryptocurrency service providers to report transactions to the Tax Authority from 2026, preparing in 2025.
Frequently Asked Questions
When did New Zealand ban cryptocurrency ATMs?
The ban policy was announced in 2025 with the goal of preventing money laundering and financial crime.What is the limit on international money transfers?
The maximum limit is $5,000 per international cash transfer.Are cryptocurrency ATMs legal in other countries?
Most other countries still allow operations with varying AML regulations.How does this policy affect legitimate businesses?
The government reduces verification procedures for low-risk customers, alleviating the compliance burden for businesses.Does New Zealand have specific laws for cryptocurrency?
Cryptocurrency is recognized as taxable property, not yet a financial product, and regulations are being refined.
Source: https://tintucbitcoin.com/crypto-atm-new-zealand-bi-cam-moi/
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