New Zealand has announced a nationwide ban on cryptocurrency ATMs as part of an overhaul of its Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) framework. The decision, led by Associate Justice Minister Nicole McKee, aims to disrupt the use of these machines by criminal networks for money laundering and drug trafficking.
According to a recent report by the Ministerial Advisory Group on Transnational, Serious and Organised Crime, approximately 220 crypto ATMs were operating across New Zealand as of April 2025, often located in convenience stores, petrol stations, vape shops, and laundromats. These machines, which allow users to convert cash into digital currencies like Bitcoin with minimal identity verification, have been identified as a key tool for criminals to launder illicit funds and facilitate untraceable transactions.
“These are a sound form of money laundering,”
McKee stated in an interview with 1News, citing a case where NZ$107 million ($64 million) was allegedly laundered through such channels, and another involving the use of crypto to purchase over 100 kilograms of methamphetamine for import into New Zealand.
The ban, announced on July 17, 2025, will require all crypto ATMs, including those operated by providers like CoinFlip, to be shut down once the legislation takes effect. Alongside the ban, the government has introduced a NZ$5,000 cap on international cash transfers to restrict the movement of illicit funds further offshore. This measure aims to block criminals from using cash-based transfers while allowing legitimate electronic transactions to continue unimpeded.
“Criminals can use these ATMs to purchase cryptocurrency and transfer it within minutes to offshore criminals to fund drug imports or scams. We are serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape.”
McKee said in a press release
The reforms also grant the Financial Intelligence Unit (FIU) expanded powers, enabling it to demand ongoing data from banks and financial institutions to track suspicious activities more effectively.
New Zealand’s move aligns with a global trend of increasing scrutiny on crypto ATMs. The United Kingdom banned them in 2022, and Singapore imposed a moratorium on their operation the same year. Australia, while not banning the machines outright, introduced stricter regulations in June 2025, including an AU$5,000 transaction cap and enhanced Know-Your-Customer (KYC) checks. In the United States, cities like Spokane, Washington, have also banned crypto ATMs due to their role in scams targeting vulnerable populations.
CoinFlip, New Zealand’s largest crypto ATM provider with around 120 machines, called the ban “a step backwards for the digital economy,” advocating for targeted regulations like wallet pinning and pre-transaction risk checks instead. However, Janine Grainger, co-founder of Easy Crypto, a New Zealand-based trading platform, welcomed the decision, stating it “signals a maturing—not a dismantling—of the sector” and ensures customer safety.
While Bitcoin and other cryptocurrencies remain legal in New Zealand, classified as property and subject to income tax, the government is tightening oversight to integrate digital assets into existing financial regulations. McKee emphasized that the reforms aim to make New Zealand
“one of the easiest places in the world to do legitimate business and one of the hardest for criminals to hide.”
The new legislation, which includes measures to reduce compliance burdens for low-risk businesses and customers, is expected to be introduced to Parliament soon.
