In a significant move to curb financial crime, the government of New Zealand has announced a nationwide ban on cryptocurrency ATMs, effective from July 9, 2025. This decision, spearheaded by Associate Justice Minister Nicole McKee, targets the roughly 200-221 crypto ATMs currently operating in the country, which authorities believe are being exploited for illicit activities.
The primary motivation behind the ban is to close a critical loophole in money laundering operations. Criminals have been using these machines to convert cash into digital assets, making it difficult for law enforcement to trace funds. Alongside the ATM ban, the government is also imposing a strict cap of $5,000 on international cash transfers to further tighten financial oversight.
According to officials, this reform is part of a broader strategy to strengthen anti-money laundering (AML) and counter-terrorism financing measures. The new policies will also expand enforcement powers, enabling more comprehensive surveillance of individuals suspected of financial misconduct.
While the ban has raised concerns among some crypto enthusiasts, industry leaders have largely supported the move, viewing it as a necessary step to legitimize the sector. The government has assured the public that it remains committed to supporting legitimate crypto businesses and fostering innovation in the digital asset space.
For crypto users in New Zealand, this ban means they will need to rely on online exchanges and other platforms for transactions. This shift could potentially impact accessibility, especially for those without reliable internet access or familiarity with digital wallets.
As New Zealand takes this bold step, it joins a growing list of countries implementing stricter regulations on cryptocurrency infrastructure to combat financial crime. The global crypto community will be watching closely to see how these changes affect the local market and whether other nations follow suit with similar regulatory measures.
Andrew Lee
