The New Zealand government recently announced a comprehensive ban on the operation of cryptocurrency ATMs as one of the core measures in its reform of the anti-money laundering (AML) and countering the financing of terrorism (CFT) system.
Deputy Minister of Justice Nicole McKee emphasized in a statement on July 9 that this move aims to cut off a key channel for criminal organizations to convert illegal cash into digital assets.
Data shows that New Zealand currently operates 221 cryptocurrency ATMs, ranking eighth in the world, and these devices will now become a focus of regulation.
This ban is not an isolated action but part of a broader financial regulatory reform. Under the new regulations, international cash transfers will also be limited to single transactions of $5,000 or less to curb the cross-border movement of large illegal funds.
Minister of Justice McKee pointed out that the government is committed to creating a "smarter and more flexible" regulatory system. This system aims to simplify the regulatory burden on compliant businesses while empowering financial intelligence agencies to obtain more comprehensive transaction background information for precise enforcement. This strategy is intended to balance financial security with business competitiveness.
From an international perspective, New Zealand's policy adjustment is highly synchronized with global regulatory trends. Germany seized $28 million by confiscating illegal crypto ATMs in 2024; several states in Australia and the United States have also implemented similar restrictions. These cases provide regulatory experiences for New Zealand to draw upon.
It is noteworthy that the reform plan specifically emphasizes adapting to the "significantly changed global financial landscape since 2019," suggesting that its regulatory framework will continue to evolve to address new challenges posed by cryptocurrency technology.
Some analysts believe that this ban may limit retail investors' access to cryptocurrencies in the short term, but in the long run, it could promote mainstream financial institutions to gradually begin accepting digital assets.
As McKee stated, the ultimate goal of the reform is to build a modern regulatory system that "effectively combats money laundering while supporting efficient business operations."
Meanwhile, as the details of the legislation are gradually disclosed, how New Zealand balances financial innovation with risk prevention will become an important case study in observing the cryptocurrency regulatory strategies of small open economies.