New Zealand has banned crypto ATMs and limited international cash transfers to no more than USD 5,000 as part of an AML reform.
The government made public its AML and CFT regime in a statement, aiming to strengthen the efforts to combat serious financial crime and protect Kiwi businesses and consumers. A new bill will be introduced to expand the enforcement power for police and regulators, enabling the Financial Intelligence Unit to gain more financial data on people of interest and initiate consultation on a charge to fund the regime.
Making it harder for criminals to launder money through crypto ATMs
The government is committed to targeting criminals without interfering with the operations of Kiwi businesses. It wants New Zealand to be a safe and simple place for companies to do legitimate and responsible business, and a hard place to hide for criminals. The reforms include an established upper limit of USD 5,000 per transfer for cross-border transactions, targeting criminal organisations’ ability to move funds offshore while allowing legit transfers through electronic bank channels.
Industry leaders deem the move as a necessary step to legitimise the sector, which hosts over 221 ATMs, according to Coin ATM Radar data. While they are keen to see crypto adoption increase, together with the number of crypto ATMs around the country, they also want to support responsible growth that keeps consumers safe. With insufficient protections, like KYC, in place, companies like Giottus believe that the ban was inevitable.
These changes will primarily affect high-risk scenarios, and not everyday users who prefer safer and more transparent platforms over crypto ATMs with fees that can be as high as 20%. These high conversion fees are not appealing to the average, cost-conscious user, but to those seeking privacy or to convert illicit crypto or cash.
The ban follows growing international concern over crypto ATMs’ role in fraud and money laundering. AUSTRAC placed the sector on notice after a taskforce flagged negative trends in scams targeting the elderly. In the US, Washington voted to ban crypto kiosks entirely based on FBI data that showed USD 5.6 billion in fraud losses tied to the machines in 2024.
