New Zealand is set to ban cryptocurrency ATMs and limit international cash transfers to $5,000 under sweeping new anti-money laundering (AML) reforms aimed at choking off criminal cash flows.
Associate Justice Minister Nicole McKee announced the proposed changes on July 9, stating that the reforms would “target criminals” who exploit virtual currency kiosks to convert large amounts of illicit cash into crypto.
The government plans to introduce a bill granting broader enforcement powers to police and regulators while strengthening the Financial Intelligence Unit’s ability to monitor financial activity linked to individuals of concern.
“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,”
McKee said. She added that the overhaul would cut back red tape for low-risk entities, enabling authorities to focus resources on serious threats.
Authorities believe capping international cash transfers at $5,000 will make it harder for organized crime groups to funnel illicit funds offshore. At the same time, legitimate remittances can still be processed via electronic banking channels.
Crypto ATMs have long been flagged as a potential loophole for money laundering. A 2025 report by the Ministerial Advisory Group on Transnational, Serious and Organised Crime revealed that criminals frequently used these kiosks to send funds abroad “within minutes” to bankroll drug imports and scams.
Global concern over the misuse of crypto ATMs has intensified. Spokane, Washington, recently became the first city in the state to ban them entirely, giving operators 60 days to dismantle more than 40 kiosks following a surge in fraud cases involving scammers impersonating police or tax officers.
Elsewhere, Nebraska passed new legislation this year requiring crypto ATM operators to obtain state licences, cap transaction fees at 18%, limit daily transfers to $2,000 for new users, and refund scam victims who report within 90 days.
Australia’s financial intelligence agency, AUSTRAC, also tightened its rules in June, capping cash transactions at 5,000 Australian dollars per crypto ATM deal, enforcing mandatory scam warnings, and introducing enhanced customer due diligence.
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