New Zealand Shuts Crypto ATMs and Caps Global Cash Transfers

• Crypto ATMs in New Zealand will be removed to stop fast, secret swaps used by criminals.
• A new limit on overseas transfers will make it hard to send large amounts without checks.
• Police and finance units will now get more tools to find and stop money laundering.

New Zealand is banning all crypto ATMs and capping international cash transfers at $5,000 as part of a sweeping anti-money laundering initiative. The government says these measures are designed to choke off financial flows linked to organized crime, drug trafficking, and terrorism financing. Associate Justice Minister Nicole McKee announced the new regime, saying it marks a critical step in stopping criminal finance while protecting legitimate business operations.

Government Rolls Out New Powers to Target Financial Crime

Nicole McKee announced New Zealand’s latest revamp of its anti-money laundering and counter-terrorism financing (CFT) framework in a statement on Wednesday. A new bill will be introduced to expand the powers of police and regulators and enhance the Financial Intelligence Unit’s reach. The bill will also begin public consultation on a levy to fund ongoing AML/CFT enforcement.

“This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape,” McKee said. “We want New Zealand to be one of the easiest places in the world to do legitimate business and one of the hardest for criminals to hide.”

The package includes granting the FIU the authority to request ongoing financial data from banks and reporting entities related to flagged individuals. This expands the FIU’s capabilities to track suspicious behavior more effectively across institutions and time.

Two separate AML reform bills are already before Parliament and are expected to pass before year’s end. McKee said they would “remove some of the most burdensome compliance requirements, delivering practical relief for businesses by the end of the year.”

She clarified that this streamlining does not reduce regulatory standards. “This is not about dropping standards; it’s about applying them intelligently,” McKee added.

Crypto ATM Ban to Disrupt Criminal Money Movement

The government’s ban on crypto ATMs is one of the most visible components of the new strategy. Officials say criminals increasingly use these machines to convert illicit cash into cryptocurrency and send it offshore undetected. The ban is designed to sever this channel entirely.

“We will also make it more difficult for criminals to convert cash to high-risk assets such as cryptocurrencies by banning crypto ATMs,” McKee said.

A government report by New Zealand’s Ministerial Advisory Group on Transnational, Serious and Organized Crime in April warned that crypto kiosks are used to transfer drug profits and launder funds from fraud. The report directly linked ATM use to organized criminal networks and cross-border financial crime.

Coin ATM Radar data indicate that there are currently more than 220 active crypto ATMs operating in New Zealand. These machines are typically located in petrol stations, convenience stores, vape shops, and laundromats.

Crypto exchange Giottus co-founder Arjun Vijay told Decrypt that “without sufficient safeguards like KYC in place, it was inevitable that Bitcoin ATMs would face bans in many jurisdictions.” He added that these machines “impose high conversion fees of typically 5-10%,” making them “less appealing to cost-conscious users” and more attractive to those seeking privacy or laundering options.

Related: DOJ Charges Russian in $530M USDT Crypto Laundering Case

Global Trend and $5,000 Transfer Limit

The new $5,000 limit on international cash-based transfers forms another part of the reforms. Officials say the restriction will help close off another channel frequently exploited by criminals to move funds overseas while keeping electronic options open for compliant users.

New Zealand’s move follows a growing international crackdown on crypto ATMs and unregulated cash flows. In June, Australia’s financial intelligence agency, AUSTRAC, imposed new rules on crypto ATM operators. These included a cap of AUD 5,000 (about $3,250) for deposits and withdrawals, tighter customer checks, and stronger monitoring practices amid escalating scam activity.

In the U.S., Spokane, Washington, has gone even further. The Spokane City Council recently announced a complete ban on crypto ATMs, pledging to remove all existing kiosks. Officials there say the machines are used by fraudsters targeting vulnerable people, especially in low-income neighborhoods.

New Zealand now joins that global trend with what McKee called a “smart regulation” approach. She said the system will make it more difficult for criminals to exploit crypto and cash channels while ensuring lawful business remains unhindered.