New Zealand is taking a firm stance against financial crime with the announcement of a nationwide ban on cryptocurrency ATMs and the imposition of a $5,000 limit on international cash transfers. These significant measures, revealed today by Associate Justice Minister Nicole McKee, are part of a broader package of reforms designed to strengthen the country's fight against illicit financial flows.
The planned legislation aims to grant expanded powers to police and regulators, allowing them to more effectively target financial crime. A new levy will also be introduced to bolster the existing enforcement framework. At the heart of the new policy is a direct attack on what authorities identify as key mechanisms for money laundering: the country's estimated 200+ crypto ATMs and large cash transfers across borders.
"This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape," stated Associate Justice Minister Nicole McKee. She emphasized that the reforms are designed to make it "more difficult for criminals to convert cash to high-risk assets such as cryptocurrencies by banning crypto ATMs." The $5,000 per transfer limit on international cash transactions is intended to "reduce the ability of criminal organizations to move its funds offshore."
Despite these stringent restrictions, the New Zealand government maintains its commitment to fostering an environment conducive to legitimate business operations. The reforms are being developed with insights from the Reserve Bank, aiming for a "smarter, more agile AML/CFT system." This new approach seeks to deliver greater clarity and consistency for businesses, while maintaining a sharp focus on preventing the misuse of the financial system by criminals.
The cryptocurrency community in New Zealand remains cautious following the announcement, with no immediate comments from major industry leaders. Some experts have highlighted potential liquidity issues within the local market, as the reduction in ATM access could limit cash-based inflows into digital assets. This move by New Zealand aligns with a growing global trend among nations to enhance regulatory oversight of the crypto sector as part of broader anti-money laundering and counter-terrorist financing efforts.
July 2025, Cryptoniteuae