New Zealand bans cryptocurrency ATMs and limits money transfers to combat money laundering

#NewZealand is banning cryptocurrency ATMs and limiting international cash transfers to $5,000 to combat money laundering and crime financing. This move is part of the government's extensive reforms.

Reforms and Reasons

Justice Minister Nicole McKee stated that the new bill will expand enforcement powers for police and regulatory agencies, allowing the Financial Intelligence Unit to gather broader financial data on suspicious individuals. Reports indicate that criminals use #ATMcrypto to buy and transfer cryptocurrency for illegal activities.

Leaders in the cryptocurrency industry in New Zealand support this ban. They argue that these ATMs primarily attract those seeking anonymity or converting illegal money due to a lack of KYC regulations and high fees. This move is viewed as a necessary step to legitimize the industry and ensure user safety, rather than undermining it.

Global Trends

New Zealand is not alone in tightening control over cryptocurrency ATMs. Australia has recently warned the sector due to scams targeting the elderly, and Spokane (USA) has voted to completely ban crypto ATMs after FBI data showed $5.6 billion in losses due to fraud related to these machines in 2024.