Key Insights
- New Zealand has banned all cryptocurrency ATMs and set a NZ$5,000 cap on international cash transfers to fight money laundering and organized financial crime.
- The government cited rising misuse of crypto kiosks by criminals and promised to strengthen the Financial Intelligence Unit’s monitoring powers.
WELLINGTON, (MarketsXplora) – New Zealand has moved to outlaw cryptocurrency automated teller machines (ATMs) and impose a NZ$5,000 (US$3,000) cap on international cash transfers as part of sweeping reforms to crack down on money laundering and organized financial crime.
Announced Wednesday by Associate Justice Minister Nicole McKee, the measures form part of a broader overhaul of the country’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regime. The move follows growing concerns over the use of crypto kiosks by criminals to convert illicit cash into digital assets and shift funds abroad undetected.
This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape, McKee said in a statement.
There are currently 221 crypto ATMs operating in New Zealand, according to Coin ATM Radar. All will be removed once the ban takes effect.
New Zealand Bans Crypto ATMs to Block Criminal Cash Conversions
The government’s clampdown comes in response to findings from the Ministerial Advisory Group on Transnational, Serious and Organised Crime, which highlighted how crypto ATMs have increasingly been used to quickly launder money tied to drug trafficking and fraud.
Unlike traditional ATMs, crypto kiosks allow users to exchange physical cash for cryptocurrency—often with high fees and little oversight. By eliminating these machines, McKee said authorities are cutting off a “high-risk” conversion channel used by criminal networks.
In tandem with the crypto ATM ban, New Zealand will implement a NZ$5,000 ceiling on international cash transfers. Officials say this limit will reduce the ease with which large sums can be moved abroad for illicit purposes.
The Financial Intelligence Unit (FIU) will also be granted expanded authority to demand ongoing information from banks and other reporting entities about individuals flagged for suspicious financial activity.
Related: FCA Cracks Down on 26 Illegal Crypto ATMs Across the UK
Following Australia’s Lead, But With Tailored Touch
New Zealand’s move aligns with a growing global trend. Just last month, Australia introduced its own AU$5,000 cap on crypto ATM deposits and withdrawals, alongside tighter customer verification checks and transaction monitoring.
Australia’s financial regulator noted that citizens aged 60 to 70 are the most frequent users of crypto ATMs—a demographic particularly vulnerable to scams. These findings triggered a nationwide push for enhanced protections. In a similar vein, Spokane, Washington, in the U.S., has opted for a total ban on crypto ATMs, citing disproportionate harm to low-income residents.
While New Zealand’s crypto ATM network is relatively small compared to Australia’s—where over 1,200 machines process an estimated AU$275 million in annual volume—the policy shift reflects an effort to get ahead of criminal exploitation before it becomes entrenched.
“Applying Standards Intelligently”
Despite the tougher stance on illicit finance, the New Zealand government is also promising regulatory relief for compliant businesses. Two AML reform bills already before parliament are expected to pass before the end of the year, with provisions to reduce overly burdensome compliance requirements.
This is not about dropping standards, it’s about applying them intelligently, McKee said.
Among the proposed changes are the removal of address verification checks for many lower-risk customers and a softening of due diligence rules for low-risk trusts. McKee emphasized that the reforms aim to let businesses focus resources on genuine threats rather than “chasing paperwork from low-risk clients.”
The reform package marks a significant recalibration of New Zealand’s financial security framework—tightening the net around illicit finance while aiming to unshackle businesses from one-size-fits-all compliance hurdles.