New Zealand Moves to Ban Crypto ATMs in Anti-Money Laundering Crackdown

New Zealand is set to ban cryptocurrency ATMs as part of a major crackdown on money laundering and financial crime.

The initiative is part of a broader reform of the country’s anti-money laundering and counter-terrorism financing (AML/CFT) laws.

Associate Justice Minister Nicole McKee announced the plan on Wednesday. She noted that criminals are using crypto ATMs to transfer cash rapidly into high-risk assets.

“These reforms are about targeting criminals, not creating more red tape for honest businesses,” McKee said.
Why Crypto ATMs Are in the Crosshairs
Crypto ATMs allow users to insert cash or swipe a bank card in exchange for cryptocurrency, which can then be transferred instantly, often to offshore wallets.

Authorities say these machines are being misused. Scammers advertise fake products online, then ask buyers to send cryptocurrency through ATMs. Once the payment is made, the scammer disappears.

According to an April report from the Ministerial Advisory Group on Transnational, Serious, and Organised Crime, crypto ATMs have been exploited to purchase cryptocurrency. The funds are then transferred within minutes to offshore criminals, facilitating drug imports or scams.

New Limits on Cash Transfers
The government also wants to cap international cash transfers at NZ$5,000 (about US$3,000). This is intended to make it more difficult for criminals to send money overseas.

The Cabinet has introduced a new bill to expand police powers and strengthen oversight. Regulators will be empowered to take more aggressive action against individuals using the financial system for illicit activities.
Global Scrutiny on Crypto ATMs
New Zealand’s proposed crackdown mirrors growing international concern over the vulnerability of crypto ATMs to abuse. Neighboring Australia has stepped up oversight of the sector, with its financial watchdog, AUSTRAC, placing it “on notice” after a taskforce identified scams, particularly targeting the elderly.

In the U.S., Spokane, Washington, banned crypto kiosks entirely following an FBI report revealing $5.6 billion in fraud losses in 2024 linked to these machines.
Crypto ATM Growth Raises Red Flags
According to Coin ATM Radar, there are around 38,500 crypto ATMs globally. Over 30,000 are in the United States. New Zealand currently has 221.

McKee said the country’s new approach aims to deliver more clarity for businesses while maintaining the safety of the financial system. The crypto ATM ban, she noted, is a key part of that strategy.