New Zealand Bans Cryptocurrency ATMs to Combat Financial Crime
New Zealand has taken decisive action against money laundering and financial crime by banning cryptocurrency ATMs and imposing a $5,000 limit on international cash transfers. Associate Justice Minister Nicole McKee detailed these measures as part of an overhaul of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework. This aligns with global efforts to curb the misuse of digital currencies for illegal activities.
Global Regulatory Trends
New Zealand’s crackdown on crypto ATMs follows similar moves worldwide. Australia’s AUSTRAC has enforced restrictions on these machines, while Spokane, Washington, has banned them entirely. These measures aim to disrupt criminal networks exploiting digital finance loopholes.
Strengthening Financial Oversight
The Financial Intelligence Unit (FIU) now has enhanced authority to monitor suspicious transactions. This balanced approach safeguards legitimate businesses while tightening controls on illicit financial flows.
Key Regulatory Changes
- Prohibition of cryptocurrency ATMs to prevent illegal cash conversions.
- $5,000 cap on cross-border cash transfers to deter large-scale money movements.
- Expanded FIU surveillance powers to identify and investigate suspicious activities.
Data from Coin ATM Radar indicates over 220 crypto kiosks were active in New Zealand pre-ban, underscoring the regulatory challenges in the cryptocurrency market.
