The New Zealand government is planning to outlaw cryptocurrency ATMs as a key component of its effort to revamp the country's anti-money laundering and counter-terrorism financing framework. According to Associate Justice Minister Nicole McKee, the government seeks to disrupt the methods used by criminals to convert cash into high-risk assets, including cryptocurrencies. To further restrict the flow of illicit funds, McKee has proposed capping international cash transfers at $3,000.
A new bill has been introduced to bolster the enforcement powers of law enforcement agencies and grant regulators the authority to crack down on individuals involved in money laundering. This revised approach is expected to provide businesses with greater clarity and consistency while maintaining a strong focus on preventing the misuse of the financial system.
Cryptocurrency ATMs, which enable users to buy cryptocurrencies using cash or bank cards, have been identified as a potential vehicle for criminal activity due to their vulnerability to scams. As a result, these machines have been subject to stringent regulatory oversight in several countries, including Australia. According to Coin ATM Radar, there are currently over 38,000 cryptocurrency ATMs installed worldwide, with more than 30,000 located in the United States and 221 in New Zealand.