New Zealand Moves to Prohibit Crypto ATMs in Anti-Money Laundering Reform

Overview

The government of New Zealand is planning to abolish cryptocurrency ATMs as part of efforts to reform its anti-money laundering and counter-terrorism financing (AML/CFT) strategy. This initiative aims to prevent criminals from converting cash into cryptocurrencies, according to Associate Justice Minister Nicole McKee.

Key Points:

New Zealand currently has 221 crypto ATMs, as reported by Coin ATM Radar.
The proposed reform includes a cap of 5,000 New Zealand dollars (approximately $3,000) on international cash transfers to deter criminals from moving funds abroad.
This legislation aims to enhance the enforcement capabilities of the police and regulatory bodies to combat money laundering effectively.

“The new approach will deliver more clarity and consistency for businesses while maintaining a strong focus on preventing criminal misuse of the financial system,” stated McKee in her announcement.

Crypto ATMs facilitate the purchase of cryptocurrencies with cash or bank cards but are susceptible to misuse, prompting regulatory scrutiny in various countries, including Australia, New Zealand’s neighbor. Worldwide, there are approximately 38,505 crypto ATMs, with the majority located in the U.S.

By implementing these measures, New Zealand seeks to strengthen its financial system against illicit activities while promoting a safer environment for legitimate businesses.