New Zealand bans crypto ATMs and limits cash transfers
Criminals use crypto ATMs to move funds offshore, prompting New Zealand to tighten regulations and expand enforcement powers.
New Zealand is introducing sweeping reforms to tackle money laundering and criminal finance by banning crypto ATMs and capping international cash transfers at $5,000. The new bill expands enforcement powers and lets the Financial Intelligence Unit gather more data on persons of interest.
The $5,000 transfer limit aims to block criminals from moving funds offshore via cash while permitting legitimate transfers through electronic banking channels. A recent report found that criminals use crypto ATMs to purchase cryptocurrency and quickly transfer it overseas to finance drugs and scams.
Industry figures broadly welcome the crackdown, viewing it as necessary to mature the sector and protect consumers. Experts note that everyday users favour reputable exchanges over crypto ATMs, which often carry high fees and attract illicit use.
Internationally, New Zealand’s actions reflect a broader trend. Australia’s AUSTRAC and US cities like Spokane have also tightened crypto ATM regulations following alarming fraud and money laundering reports.
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