New Zealand Moves to Ban Crypto ATMs Citing AML Concerns
Governments Across the Asia-Pacific Push Major Reforms on Crypto ATMs to Strengthen Anti-Money Laundering Efforts in the Region
New Zealand has announced its intention to tighten international cash transfer rules and ban the use of cryptocurrency ATMs in its efforts to combat money laundering and other forms of illicit financial activity. The government announced these measures as part of an overhaul of its anti-money laundering regulations and counter-terrorism financing in the country.
Associate Justice Minister Nicole McKee said the reforms aim to strike a balance, limiting criminality while easing compliance burdens for legitimate businesses. “This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape,” McKee stated.
New Rules on Cash and Crypto ATMs in New Zealand
Under the proposed new bill, the government will impose a $5,000 cap on international cash transfers. The change targets organized crime groups that use mass cash movements to channel illicit funds overseas.
Notably, New Zealand will also ban all cryptocurrency ATMs. The move comes as officials claim they have become tools for quick and anonymous transfers linked to fraud, drug trafficking, and scams targeting the elderly.
Additionally, the bill will grant the Financial Intelligence Unit (FIU) new powers to demand ongoing, detailed financial information from banks and reporting entities. The FIU will also be able to request broader context on persons of interest to help build stronger financial intelligence cases.
Australia Cracks Down on Crypto ATMs
The Australian Transaction Reports and Analysis Centre (AUSTRAC) took similar steps, placing a notice on crypto ATMs in the country. However, Tthe country’s financial task force warned of concerning trends in scam and fraud activity tied to crypto ATMs, in a statement released on Monday.
Over 150 unique scam incidents tied to crypto ATMs were reported in the country from January 2024 to January 2025,, with total financial losses during this period estimated to be over $2 million. Almost half of the victims fell within the 60-70 age bracket,, suggesting that the scams were targeting elderly citizens.
“The taskforce has been busy engaging with businesses to understand the risks in their sector and assess their compliance with the law,” CEO Brendan Thomas stated.
To combat the fraud, AUSTRAC capped deposits and withdrawals at $5,000 per transaction and called for enhanced customer due diligence.
