Crypto ATMs were just banned in New Zealand

New Zealand has banned cryptocurrency ATMs in 2025 as part of a broader overhaul of its anti-money laundering and countering the financing of terrorism (AML/CFT) framework. The government’s primary reason for this ban is to target a known vulnerability: criminals using crypto ATMs to convert cash into cryptocurrencies quickly, which they can then transfer offshore to fund illegal activities such as drug imports and scams.

The ban affects approximately 221 crypto ATMs across New Zealand, which have been found in locations like small supermarkets, convenience stores, petrol stations, etc.

Authorities have raised concerns that these machines facilitate anonymous transactions that are hard to trace, enabling serious financial crimes. The government also introduced measures like setting a limit of 5,000 New Zealand dollars on international cash transfers to further restrict illicit financial flows.

This move is part of a larger effort to strengthen enforcement powers against money laundering and financial crime and to provide clearer regulatory standards for businesses to operate while preventing criminal misuse of the financial system. The New Zealand Financial Market Authority (FMA), responsible for oversight in this domain, aims to balance regulatory clarity with strict crime prevention.

The ban on crypto ATMs matters because it highlights the risk posed by cash-to-crypto gateways as entry points for money laundering and related crimes.

By shutting down these ATMs, New Zealand aims to reduce illicit financial activity, increase transparency, and safeguard the integrity of its financial system. However, it also raises questions about retail access to digital assets and the future of crypto adoption in the country.

It's me, @justmythoughts, an ordinary Hive user looking to make the most of the platform. I will appreciate your support. Follow me for more. Thanks, Gracias :)

Posted Using INLEO