New Zealand Proposes Crypto ATM Ban in AML Crackdown

New Zealand's government is moving to ban cryptocurrency ATMs as part of a sweeping overhaul of its anti-money laundering (AML) and counter-terrorism financing (CFT) framework. Associate Justice Minister Nicole McKee announced the measures targeting tools criminals use to convert cash into high-risk digital assets.

The proposed regulations include a NZ$5,000 ($3,000) limit on international cash transfers and enhanced enforcement powers for financial regulators. "This delivers clarity for businesses while preventing criminal misuse of the financial system," McKee stated in the policy announcement.

Crypto ATMs, numbering over 38,000 globally, face increasing scrutiny worldwide. Australia and other jurisdictions have already imposed strict controls on the kiosks, which enable anonymous cash-to-crypto conversions that facilitate scams and illicit transactions.