On 17 July 2025, New Zealand became the latest country to be added to the growing list of countries cracking down on crypto infrastructure when it revealed a nationwide ban on cryptocurrency ATMs. The ban, which was announced by Associate Justice Minister Nicole McKee, forms part of a broader reform package to strengthen the country’s anti-money laundering (AML) and counter-terrorism financing (CTF) regime.
A Tightening Grip on Financial Anonymity
Crypto ATMs, also known as Bitcoin ATMs or BTMs, have consistently operated in a murky area. While they were originally introduced as a simple method of bridging the cash and crypto divide, their unregulated nature has come under increasing scrutiny. The machines enable the purchase or sale of cryptocurrency for cash in the majority of jurisdictions with little to no identification. This provides a channel for fraud, scams, and money laundering of criminal funds.
The Ministry of Justice justifies the reforms as aimed at “disrupting the infrastructure that criminals use to hide their identities and transfer money unnoticed.” Authorities assert that legitimate users are not the target, but financial technologies bearing higher risk must be brought more firmly under regulatory control.
International Developments Mirror New Zealand’s Conservative Stance
Such fears are not unique to New Zealand. Governments worldwide are taking similar regulatory measures against crypto ATMs due to the risks associated with decentralised finance.
In the UK, the Financial Conduct Authority (FCA) effectively banned crypto ATMs as early as 2022, stating that no operator had been registered as necessitated under AML law.
Simultaneously, the Australian government has not imposed a blanket ban but has layered level-by-level compliance. Crypto ATM providers must now conduct robust identity checks, real-time monitoring of transactions, and imposition of limits on transactions to minimise exposure to illicit use.
Business Impact and Industry Reaction
Businesswise, the crackdown raises difficult questions. Financial investors in crypto ATMs contend the vast majority of customers are legitimate retail investors who just desire convenience. They contend that with appropriate precautions, such as biometric ID verification and transaction monitoring, the technology can be managed instead of killed.
However, critics say that even with updates, the very anonymity offered by most such machines is difficult to handle. Crypto ATMs typically do not possess the infrastructure to provide real-time compliance reporting or advanced fraud detection, like traditional banks or centralised exchanges.
A Sign of Things to Come?
The ban in New Zealand likely signals future developments worldwide. As digital assets mature and become increasingly mainstream, governments are going to come under more pressure to implement controls that strike the correct balance between innovation and security.
A New Era of Inclusive Banking Across Regions
The Commonwealth Union is taking significant steps towards a more unified and forward-looking financial environment. Through its dedicated Crypto and Blockchain Vertical, the Union is bringing together government, finance, and tech leaders to advance cross-border collaboration and unlock new investment opportunities.
Later, the Commonwealth Union also plans to introduce its Digital Banking network— an innovative platform that will be another impetus for driving access to financial services and economic connectivity between and within the Commonwealth and MENA regions.
If you would like to know more or would like to join us before the launch, contact us at Info@commonwealthdigitalbankingclub.com
