New Zealand Bans Crypto ATMs in Major Anti‑Money Laundering Overhaul
New Zealand’s government has announced a ban on cryptocurrency ATMs, targeting their use in money laundering and illicit financial activity. Associate Justice Minister Nicole McKee revealed the initiative as part of a sweeping update to the AML/CFT framework, also introducing a NZD 5,000 limit on international cash transfers .
At present, around 200–220 ATMs allow cash-to-crypto transactions nationwide—with operators like CoinFlip and Localcoin facing increased scrutiny . The authorities believe these machines facilitate anonymous cash conversions that can fuel terrorism financing and drug trade .
The ban mandates removal of all existing crypto ATMs by December 2025. Operators refusing to comply may face hefty fines or prosecution, while the Financial Intelligence Unit (FIU) gains expanded powers to enforce and monitor suspicious transactions .
💡 What This Means for Users
Casual and unbanked users will lose quick access to cash-to-crypto services.
Conversion is shifting toward fully regulated exchanges requiring ID verification.
Privacy advocates warn about reduced financial freedom and access barriers.
The move aligns NZ with jurisdictions like the UK and Singapore that have similar restrictions .
🔍 Bottom Line:
The ATM ban reflects New Zealand’s commitment to closing financial crime loopholes. While enhancing regulatory strength, it also challenges convenient access for everyday users—signaling a clear pivot toward a more controlled and transparent digital
asset ecosystem.