The New Zealand government has announced a sweeping ban on cryptocurrency ATMs and a $5,000 cap on international cash transfers. These measures, announced on July 9, 2025, aim to curb money laundering and terrorist financing. The reforms target the misuse of crypto ATMs, which are often exploited for illicit activities.
New Zealand Hit Crypto ATMs With Nationwide Ban
The nationwide ban eliminates around 220 crypto ATMs, commonly found in supermarkets, petrol stations, and convenience stores. Authorities cite their use in laundering drug money and funding illegal activities like drug imports. Police reports highlight how fraudsters exploit these machines for scams, including romance fraud.
New Zealand treats cryptocurrencies as property, rather than legal tender, under existing laws, such as the 2009 AML/CFT Act. The Financial Markets Authority enforces compliance, but specific regulations for cryptocurrencies remain limited, adopting a cautious “wait and see” approach.
The ban prohibits all crypto ATM operations, halting cash-to-crypto conversions that enable rapid, often untraceable, transactions. Additionally, businesses cannot accept cash payments over $5,000 for international fund transfers, though bank transfers remain unaffected. The new legislation will enhance the powers of police and regulators to monitor financial crimes.
A new financial sanctions regime and a funding levy for AML systems are also planned. These reforms aim to strike a balance between legitimate business operations and stricter crime prevention measures.
Global Outlook on Cryptocurrency
The country’s ban, led by Associate Justice Minister Nicole McKee, aligns with global efforts to curb crypto-related financial crimes, following similar restrictions in other nations. For instance, Australia’s AUSTRAC has warned crypto ATM providers about inadequate AML checks, citing scam risks.
Other countries, however, have broadened the scope of their restrictions to affect not just crypto ATMs but crypto itself. For example, in 2024, the Russian government authorized a list of areas and territories where crypto mining will be prohibited, starting January 1, 2025. According to a local news agency, TASS, the restriction will remain effective until March 15, 2031.
Meanwhile, Indonesia’s Commodity Futures Trading Regulatory Agency, Bappebti, has taken a different approach, approving 1,444 crypto assets, paving the way for their trading on cryptocurrency exchanges. This approval is part of Indonesia’s efforts to develop a more comprehensive regulatory framework for cryptocurrencies.
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