New Zealand has shut down all crypto ATMs to fight money laundering and drug trafficking.
- Over 220 machines banned nationwide as part of reform
- Crypto still legal in New Zealand, but tighter rules now apply
- CoinFlip, the largest provider, disagrees with the decision
Government Moves to Stop Criminal Use of Crypto ATMs
On July 17, 2025, New Zealand banned every cryptocurrency ATM in the country. These machines let users turn cash into digital money, like Bitcoin, with little ID checks. Most were in places like convenience stores or laundromats.
Associate Justice Minister Nicole McKee said the ban was needed to stop serious crime. Her team found that criminals were using the machines to send money overseas for drugs and other illegal activity. One case involved over NZ$107 million ($64 million) being laundered this way.
More Anti-Money Laundering Reforms Introduced
The crypto ATM ban is part of a wider update to New Zealand’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) laws. Other changes include:
- A new NZ$5,000 limit on sending cash overseas
- Stronger powers for the Financial Intelligence Unit to get reports from banks
- Fewer rules for low-risk businesses to make compliance easier
Minister McKee said these changes aim to stop criminals while giving businesses a fair chance to grow.
Crypto Use Still Legal in New Zealand
Despite banning crypto ATMs, the New Zealand government has not banned cryptocurrencies like Bitcoin. People can still buy, sell, and store crypto. However, it is not official money. Instead, it is treated as taxable property.
Anyone running a crypto business must follow the country’s financial laws and register with authorities. This includes doing ID checks and reporting suspicious behavior.
CoinFlip Pushes Back Against the Ban
CoinFlip, a major crypto ATM company with 120 machines, said the ban is a “step backward.” They believe smarter rules could stop crime without removing access. They suggested ideas like photo checks or software that spots risky behavior.
CoinFlip encouraged the government to focus on regulating bad actors, not the entire industry.
New Zealand Joins Global Crackdown
Other countries are also taking action on crypto ATMs. The UK, Singapore, and China have already banned or heavily restricted them. In contrast, Australia introduced limits and ID checks, but did not ban them.
New Zealand’s full ban shows it wants strong control over how crypto is used to prevent crimes. While legal use is supported, illegal activity will not be tolerated.
Source: cointelegraph.com
