In a major step to strengthen defenses against financial crimes, New Zealand has announced a nationwide ban on cryptocurrency ATMs. Associate Justice Minister Nicole McKee is leading this action, which is part of broader changes to the country’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) system. This initiative addresses rising global concerns about the risks these machines pose for money laundering and other serious offences.
According to Cointelegraph, over 220 crypto ATMs were operating in New Zealand by April 2025. Stores, gas stations, vape shops, and launderettes frequently housed these machines. They allowed users to quickly exchange cash for digital assets, often with minimal identity checks. Minister McKee described these machines as a “safe way to launder money” during an interview with 1News. She highlighted a concerning case where an estimated NZ$107 million was laundered through these channels and mentioned a person arrested for using cryptocurrency to buy 100 kilograms of methamphetamine intended for import to New Zealand. The ability to convert cash into digital currency and transfer it abroad quickly, with limited oversight, was said to facilitate illegal financial activities like drug trafficking, scams, and even arms procurement. Along with the crypto ATM ban, Minister McKee has also set a NZ$5,000 limit on international cash transfers, tightening the grip on criminal finances.
CoinFlip, New Zealand’s largest crypto ATM provider with about 120 machines, has expressed strong disappointment over the ban. The company called the prohibition “a step backward for the digital economy.” It argued that a more focused and effective regulatory framework could meet the government’s goals without hindering innovation. CoinFlip believes that the government can reach its objectives while promoting innovation by creating smart regulations that target bad actors. The company proposed alternatives like wallet pinning, photo records, and pre-transaction risk monitoring to reduce criminal misuse while still allowing legitimate access to cryptocurrency services.
It’s to note that Bitcoin remains legal in New Zealand, which means people can buy, sell, and hold cryptocurrencies. The government’s overall strategy targets to integrate digital assets into current legal frameworks, encouraging cooperation with registered providers, though it acknowledges limited consumer safety in the emerging digital asset space.
The crypto ATM prohibition is part of a huge set of AML/CFT reforms introduced by Minister McKee. The key parts of this reform package include the NZ$5,000 limit on international cash transfers, claimed to disrupt the flow of criminal funds. The reforms also offer data-sharing powers to the Financial Intelligence Unit, offering permission to request real-time information from financial institutions about individuals under investigation. Then, simplified compliance requirements for low-risk businesses are targeted to lessen regulatory impacts while maintaining strong enforcement. Minister McKee noted that the global financial and regulatory landscape has made changes since 2019. This shift makes it necessary to create a more flexible AML/CFT system that targets criminals’ ability to launder money while allowing New Zealand businesses to operate efficiently and competitively.
The United Kingdom’s Financial Conduct Authority (FCA) banned crypto ATMs by refusing to permit them under the UK’s Money Laundering Regulations in 2022. Singapore’s Monetary Authority also paused crypto ATMs in 2022 as part of a massive crackdown on unregulated digital properties. China also went even further in 2017 by forcing a ban on most cryptocurrency transactions, including ATMs. In contrast, Australia’s Transaction Reports and Analysis Centre (AUSTRAC) took a different method, making new compliance rules for crypto ATM operators in June 2025. These rules include a cash deposit and withdrawal limit of A$5,000, stronger Know Your Customer (KYC) checks, and mandatory scam alerts, emphasizing stricter regulation rather than an outright ban.
