Why Crypto ATMs are already targeting New Zealand regulators
On July 17, 2025, the New Zealand government made a determining transition to the ongoing battle against financial crime: it announced a national ban on ATMs of Cryptocurrency.
The decision, led by Associate Justice Minister Nicole McKee, is part of a stagnant reform of the country’s anti-money laundering and counts the regime of terrorism financing (AML/CFT).
Crypto ATMs, kiosks that allow users to convert cash to digital assets such as Bitcoin (Btc), It has long existed in a regulation of gray area. According to New Zealand’s ministry adviser in transnational, serious and organized crime, the country has more than 220 such machines in operation By April 2025. Commonly found in comfort stores, fuel stations, vape stores and laundromats, these ATMs offer easy access to CryptocurrencyOften with minimal identity verification.
That comfort, however, came at a cost.
In announcing the ban, McKee pointed out that it was clear and growing evidence that machines became a tool for organized criminal activity.
“This is a sound form of Laundering of money“A case has been mentioned involved in New Zealand’s 107 million dollars ($ 64 million) allegedly laundered by such channels.
The ability to convert physical cash to digital currency and send it overseas for a few minutes, without significant administration, made these kios ideal for illicit financial flow, including drug trafficking, scams and weapons purchase.
Do you know? In conjunction with the prohibition of the Crypto ATM, minister Nicole McKee implemented an NZ $ 5,000 cap with international cash transfers as part of a broader anti -pera laundering approach.
Coinflip’s response to New Zealand Crypto ATM Ban
Coinflip, New Zealand’s largest crypto provider, with nearly 120 machines, expressed frustration with the announcement, calling it “a step backward for the digital economy.”
The company argues that a more annoying, regulatory -based approach can achieve government goals without fatigue of change.
“We believe that the government will achieve their goals while also encouraging change by implementing wise, effective regulations that target evil actors,” Coinflip said in a public statement.
They suggested alternatives such as Wallet Pinting, photographic records and pre-transaction risk monitoring to reduce criminal use while maintaining legitimate access. The intensity between rising risk and digital change is at the heart of global debates about cryptocurrency policy.
Is Bitcoin legal in New Zealand?
Yes, Bitcoin is legal in New Zealand. Individuals can buy, sell and handle cryptocurrencies independently, but they are not considered legal.
Rather, digital assets such as Bitcoin is classified as possession Under the law of New Zealand, they make taxes. The revenue derived from crypto trading or mining is subject to income tax, and businesses that operate in the sector must register and comply with anti-money regulations and financial behavior regulations.
The government’s approach has become careful but progressive: instead of inhibiting digital assets, it incorporates them into existing legal frameworks. While consumer protections remain limited, users are encouraged to deal with registered providers for additional retreat.
This legal clarity gives the change to the change that has evolved, but it has a responsibility. As New Zealand moves to ban crypto ATMs, the broader message is clear: cryptocurrency is welcome, but criminal misuse is not. Bitcoin may be legal, but the environment around it becomes more strictly controlled.
Do you know? A retired Australian police Lured in a fake investment of a national German in Thailand.
The wider AML/CFT reforms in New Zealand
The Crypto ATM ban is just one aspect of a larger AML/CFT reform package introduced by McKee on July 9, 2025.
The other key steps include:
- An NZ $ 5,000 cap in international cash transfers, aimed at breaking the flow of criminal funds to the coast.
- Improved data sharing powers for the financial intelligence unit, allowing this to request real-time information from financial institutions about individuals under investigation.
- Streamline obligations to compliance for low -risk businesses, intended to ease the burdens of regulation without compromising the power of implementation.
“Since 2019, the global financial and regulation view has changed dramatically,” McKee said. “We need a smarter, more agile AML/CFT system, one that targets the ability of criminals to make money, while enabling New Zealand businesses to work efficiently and competitively.”
The two mandates, agility to implement and fair compliance, emphasize the government’s efforts to protect the financial system without avoiding legitimate business.
How to compare New Zealand around the world?
New Zealand has joined a global wave of crypto ATM crackdowns, choosing a full restriction while peers like Australia are working on lighter regulation.
New Zealand’s ban on a growing list of countries that has adopted poor stance on crypto ATMs.
- United Kingdom (2022): The Financial Conduct Authority (FCA) has effectively banned crypto ATMs by refusing to licensed any services under the UK currency laundering regulations. Some kiosks that operate are considered illegal and subject to the action of implementation.
- Singapore (2022): Singapore’s financial authority placed a moratorium on crypto ATMs As part of a broader cracking of irregular digital assets, citing the public risk and market integrity.
- China (2017): A sweeping Ban on almost all cryptocurrency transactionsIncluding ATM operations, have been implemented as part of national financial security measures.
In contrast, Australia, the closest peer of New Zealand regulation, has decided for a more additional approach. In June 2025, the Australian transaction reports and analysis center (Austrac) introduced New compliance policies for crypto ATM operators.
This includes a cash deposit and withdrawal cap of Australia’s 5,000 dollars ($ 3,260), enhanced KYC Checks and ordered scam alerts. Instead of banning the machines, Australian regulators are focused on making them safer and clearer.
New Zealand, however, chooses a cleaner, more specific route.
