New Zealand is banning crypto ATMs and limiting overseas cash transfers to stop money laundering.
- Crypto ATMs will no longer be allowed in New Zealand.
- New laws aim to stop criminals from using crypto to hide money.
- A $5,000 cap will be set on international cash transfers.
New Laws Target Illegal Money Transfers
The New Zealand government has introduced new laws to limit illegal financial activity. These laws aim to disrupt how criminals move money using cash and cryptocurrencies.
One major measure is a total ban on crypto ATMs. These machines allow people to turn cash into cryptocurrency quickly. Government officials say criminals have been using them to fund illegal activities like fraud and drugs.
Authorities also introduced a $5,000 cap on international cash transfers. This limit aims to prevent large amounts of money from being moved overseas without proper checks.
Crypto ATMs Linked to Crime
According to government data, over 220 crypto kiosks are currently operating in the country. Officials say many are being used to turn criminal proceeds into crypto, which is then sent overseas.
Associate Justice Minister Nicole McKee confirmed that the goal is to stop criminals, not to hurt honest businesses. “This Government is serious about targeting criminals,” she said in a statement.
More Oversight from Financial Authorities
The Financial Intelligence Unit (FIU) will now get new powers. These include the ability to ask for more detailed information from banks and financial firms about people involved in suspicious activities.
The changes are part of an update to the country’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) program. Two reform bills are already in Parliament and should be passed by the end of the year.
The government says it wants to ease rules for law-abiding businesses while still keeping crime in check.
Other Countries Also Taking Action
New Zealand is not alone. Other countries are also cracking down on crypto ATMs. In Australia, a new $3,250 limit has been set for crypto ATM deposits and withdrawals.
In Spokane, Washington, officials have completely banned crypto ATMs. They say scammers used the machines to target elderly people and low-income residents.
Source: cointelegraph.com
