New Zealand to Ban Crypto ATMs, Set $5,000 Transfer Limit to Tackle Money Laundering

Highlights:

• New Zealand will ban crypto ATMs, cap transfers to stop illegal money from moving overseas.
• New rules ease AML burdens for low-risk businesses and target high-risk criminal activity.
• Criminals use crypto ATMs to send money for drugs and scams overseas.

New Zealand plans to fully ban cryptocurrency ATMs and introduce a $5,000 limit on international cash transfers. Associate Justice Minister Nicole McKee stated on July 9 that the new measures are intended to prevent criminals from exploiting crypto machines to convert large amounts of illicit cash into digital currencies. As of now, New Zealand officials have not announced when the new rules will take effect.

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McKee said the government wants New Zealand to be a place where honest businesses can work easily, but where it’s very hard for criminals to hide. She explained that the new rules will remove extra steps for low-risk businesses and help authorities focus on serious financial crimes.

McKee said:

 “This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape… [We will] establish a new financial sanctions supervisory regime and initiate engagement on a sustainable levy to fund AML/CFT system improvements.”

New Zealand aims to set a $5,000 limit to prevent criminals from moving large sums abroad unnoticed. The reforms will also ease AML/CFT rules for honest businesses and help authorities target higher-risk cases.

🇳🇿 New Zealand has banned crypto ATMs and imposed a $5,000 limit on cash transfers as part of new measures to combat money laundering. pic.twitter.com/yzd0VxMWN0

— Ajay Kashyap (@EverythingAjay) July 9, 2025

Cryptocurrency ATMs Under Fire in New Zealand’s New AML Crackdown

McKee said the new plan will bring more clarity and consistency for businesses, while also stopping criminals from misusing the financial system. She added that the government will give the Financial Intelligence Unit (FIU) more power to check if businesses are following anti-money laundering (AML) and counter-terrorism financing (CFT) rules.

Authorities say that improving the anti-money laundering system is key to stopping the misuse of cryptocurrencies and international cash transfers. Crypto ATMs, which let people buy digital currencies with cash, have been seen as a major tool for money laundering. A 2024 report by New Zealand’s crime advisory group said criminals used these machines to quickly send money overseas to pay for drug smuggling and scams.

According to Coin ATM Radar, there are over 220 crypto machines currently in use across the country. An FBI report showed that in 2024, crypto ATMs were linked to $246 million in fraud in the U.S., with over 11,000 complaints.

Worldwide Crackdown on Crypto ATMs

New Zealand’s move to ban crypto ATMs is part of a global trend of increasing oversight of these machines. Last month, Australia’s financial agency, AUSTRAC, set new rules for crypto ATM operators. These include a limit of 5,000 Australian dollars ($3,250) on cash deposits and withdrawals, better monitoring, and stricter ID checks, due to a rise in scams. At the same time, Spokane, Washington, announced a full ban on crypto ATMs.

Earlier this year, Nebraska passed a law requiring licenses for crypto ATM operators. It set an 18% fee cap and a $2,000 daily limit for new users. The law also requires refunds for scam victims who report within 90 days.

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