New Zealand Takes Firm Stance by Banning Crypto ATMs in AML Crackdown

New Zealand’s Ministry of Justice is implementing a significant change by banning crypto ATMs as part of a comprehensive revamp of the country’s anti-money laundering and counter-terrorism funding (AML/CFT) framework. This move comes as authorities aim to tighten regulations and curb the misuse of these machines for illicit purposes.

The Impact of the Ban

A key highlight of this reform is the prohibition of crypto ATMs, which have been identified as a facilitator for converting illegal funds into digital assets. According to data from Bitcoin ATM Radar, New Zealand currently ranks 8th globally in the number of active crypto ATMs, with 221 units operational.

Global Precedents and the Need for Regulation

This decision follows similar actions taken in other countries to crack down on illicit activities involving crypto ATMs. For instance, Germany confiscated $28 million from illegal crypto ATMs in 2024, prompting stricter regulations in Australia and certain US states like North Dakota.

Restrictions on International Money Transfers

Aside from the ban on crypto ATMs, New Zealand is also planning to impose limits on international money transfers, capping them at $5,000. This measure is part of a broader strategy to enhance financial oversight and prevent potential misuse of funds.

According to Sam Boolman, ChainIntel’s lead analyst, “New Zealand’s proactive approach to addressing AML/CFT concerns demonstrates a commitment to safeguarding the integrity of its financial system. By targeting key avenues for illicit transactions like crypto ATMs and setting clear limits on cross-border transfers, the government is taking decisive steps to mitigate money laundering risks.”