New Zealand has unveiled a sweeping set of reforms aimed at tightening its grip on financial crime, including a nationwide ban on cryptocurrency ATMs and a $5,000 cap on international cash transfers.
Key Takeaways:
- New Zealand has banned crypto ATMs and capped international transfers at $5,000.
- Police say crypto ATMs are being used to launder drug money through untraceable transactions.
- The reforms also expand law enforcement powers and aim to reduce red tape for low-risk users.
Announced on Wednesday by Associate Justice Minister Nicole McKee, the measures form part of an overhaul to the country’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regime.
Officials say the changes are a response to an evolving financial landscape and the growing misuse of digital finance tools by criminal groups.
NZ Police Flag Crypto ATMs as Key Tool for Drug Money Laundering
Police in New Zealand have singled out crypto ATMs as a major channel for laundering drug money.
A recent report cited 157 machines in operation nationwide, raising concern among law enforcement about their role in facilitating untraceable transactions.
“Since 2019, the global financial and regulatory landscape has shifted significantly,” McKee said.
“We need a smarter, more agile AML/CFT system – one that targets criminals ability to launder money, while enabling New Zealand businesses to operate efficiently and competitively.”
The crackdown doesn’t stop at crypto. The new $5,000 limit on outbound transfers aims to close another popular loophole exploited by illicit actors to move money offshore.
In tandem, a bill is being prepared that will expand the enforcement powers of police and regulatory agencies.
Among the upcoming changes, the Financial Intelligence Unit will receive enhanced authority to collect data critical to crime prevention.
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
The government also plans to establish a new supervisory body dedicated to overseeing financial sanctions and ensuring AML compliance is adequately funded.
While tightening oversight, officials insist the reforms are designed to avoid penalizing compliant businesses.
Two amendments currently under review seek to streamline requirements for lower-risk entities and reduce burdensome checks for everyday customers.
More Countries Clamp Down on Crypto ATMs
New Zealand’s move follows similar efforts abroad. In Australia, AUSTRAC recently introduced stricter rules for crypto ATM operators, including tighter cash limits and monitoring.
Last month, the regulator refused to renew the registration of a local crypto ATM operator, Harro’s Empires. The agency placed operating conditions, including transaction limits, on them.
In the US, Spokane, Washington, has banned crypto ATMs entirely, citing their use in scams targeting vulnerable residents.
Lawmakers in the US Senate are also attempting to tighten laws on a state and local level, with one attempt led by Illinois Senator Dick Durbin.
He has introduced the Crypto ATM Fraud Prevention Act, which would bring in legislative measures designed to protect the public — while attempting to limit inconvenience for law-abiding users.
New users would be prevented from spending more than $2,000 a day at one of these machines, rising to $10,000 in a 14-day period.
Operators would also need to have a detailed conversation whenever a new user is trying to complete a transaction with a value of over $500. Crucially though, they would also be entitled to refunds if a police report is filed within 30 days.
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