tl;dr
New Zealand is introducing strict reforms to combat money laundering and criminal finance by banning crypto ATMs and capping international cash transfers at $5,000. The government plans to enhance anti-money laundering and counter-terrorism financing regulations, expand law enforcement powers, and i...
New Zealand is implementing strict reforms targeting money laundering and criminal finance by banning crypto ATMs and capping international cash transfers at $5,000. Associate Justice Minister Nicole McKee announced the government’s plan to strengthen anti-money laundering and counter-terrorism financing regulations. A new bill will expand law enforcement powers, enhance data gathering by the Financial Intelligence Unit, and explore funding mechanisms to support these efforts.
The reforms aim to make New Zealand an easier place for legitimate business while making it more difficult for criminals to hide, according to McKee. By setting a $5,000 limit on international cash transfers, the government targets the flow of illicit funds abroad while still allowing legitimate electronic transfers. Criminals have been accused of using crypto ATMs to rapidly transfer funds offshore to finance illegal activities such as drug imports and scams.
The move has received support from industry leaders who view the ban as a sign of sector maturation rather than dismantling. Janine Grainger, co-founder of crypto platform Easy Crypto, praised the ban for promoting customer safety and compliance, noting that average users now prefer more transparent platforms over the high-fee crypto ATMs. Similarly, Giottus founder Arjun Vijay highlighted the lack of KYC safeguards and high fees (5-10%) on crypto ATMs, which mostly attract users seeking privacy or engaging in illicit transactions.
New Zealand’s crackdown reflects broader global concerns about the role of crypto ATMs in fraud and money laundering. Australia's AUSTRAC has issued warnings about scams using these machines, and Spokane, Washington, has banned crypto kiosks after FBI data linked them to billions in fraud losses.