New Zealand Bans Crypto ATMs: A Bold Step to Stop Money Laundering. By ChainFabricNews

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In a surprising move that has caught the attention of both the crypto community and the general public, New Zealand has officially banned all cryptocurrency ATMs across the country. The announcement, made in mid-July 2025, is part of the government’s larger plan to strengthen its anti-money laundering (AML) efforts.

Why Did This Happen?

For years, crypto ATMs offered people an easy way to buy or sell digital currencies using cash. But according to officials, these machines were becoming a major tool for criminals to launder money—especially cash from drug trafficking and other illegal activities.

Authorities found that criminals were using these ATMs to quickly convert large sums of money into cryptocurrency. From there, the funds could be sent overseas in minutes, without much trace. One shocking case involved over NZ$100 million allegedly laundered through these machines, including funds linked to importing drugs into New Zealand.

Associate Justice Minister Nicole McKee explained that banning the ATMs was necessary to “make it harder for criminals to turn dirty cash into digital assets.” The decision may be tough, but it aims to protect the financial system and the wider community.

What Else Is Changing?

This ban is part of a wider reform of the country's Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) laws. Some of the other key changes include:

• A new limit of NZ$5,000 on international cash transfers.

• Giving more power to the Financial Intelligence Unit (FIU) to monitor suspicious transactions.

• Easing the reporting burden on low-risk businesses.

All these efforts are designed to strike a balance between cracking down on illegal money flow and allowing honest businesses to operate smoothly.

How Are People Reacting?

Unsurprisingly, the decision has sparked debate. Crypto ATM operators say the ban punishes everyday users and not just criminals. CoinFlip, one of the largest ATM providers in New Zealand, called it “a step backward for innovation.”

Privacy advocates also worry this could push people toward riskier, unregulated platforms overseas. However, the government says that most crypto users can still legally use regulated exchanges—the ban only affects the physical kiosks, not digital platforms.

What Does This Mean for the Future?

New Zealand’s ban is part of a growing trend. Countries like the UK and Singapore have already placed heavy restrictions or outright bans on crypto ATMs. Others, like Australia, have chosen to regulate rather than prohibit.

While some see this as a blow to crypto adoption, it also shows that governments are getting more serious about protecting their financial systems. By removing easy access points for bad actors, New Zealand is making a clear statement: it welcomes digital innovation—but not at the cost of public safety.

As the crypto world continues to evolve, this decision will likely shape how other countries respond to similar challenges.