Syed Rahman details the reasons for the ban being brought in
New Zealand has said that it will ban cryptocurrency ATMs in an attempt to combat money laundering and terrorist financing.
Crypto ATMs, which allow users to convert cash into digital assets such as Bitcoin, have become attractive to those looking to convert and move the proceeds of crime. In its announcement, New Zealand also stated that it is setting a $5,000 cap on international transfers in order to curb the illicit movement of funds offshore.
Associate Justice Minister Nicole McKee said: “Since 2019, the global financial and regulatory landscape has shifted significantly. We need a smarter, more agile AML/CFT (anti-money laundering and countering the financing of terrorism) system – one that targets criminals' ability to launder money."
The New Zealand police force has stated that crypto ATMs have become one of the primary money laundering tools for drug dealers. There are believed to be 157 crypto ATMs operating in the country.
The New Zealand government also plans to introduce a bill that will significantly strengthen the enforcement powers of police and regulators, enabling them to combat money laundering more effectively. It will give the Financial Intelligence Unit the power to gather crucial information for combating crime and will establish a new financial sanctions supervisory regime to fund the AML/CFT efforts.
Problems
New Zealand is not the first country to recognise problems associated with crypto ATMs.
In the UK, for example, it is illegal to operate a crypto ATM without Financial Conduct Authority (FCA) registration. This year has seen the FCA bring its first charges - and secure a conviction – for this.
Australia has opted for trying to make crypto ATMs safer and more transparent rather than banning them. In June 2025, the Australian Transaction Reports and Analysis Centre (AUSTRAC) introduced new compliance rules for crypto ATM operators. These included a cash deposit and withdrawal cap of 5,000 Australian dollars ($3,260) and enhanced know your customer (KYC) checks.
In 2022, the Monetary Authority of Singapore placed a moratorium on crypto ATMs as part of a broader crackdown on unregulated digital assets, citing public risk and market integrity. In 2017, China placed a sweeping ban on nearly all cryptocurrency transactions, due to what it called public risk and threats to market integrity.
Argument
CoinFlip, New Zealand’s largest crypto ATM provider, has objected to the ban, calling it a “step backward for the digital economy”. It argued that measures could have been introduced to tackle criminal use of crypto ATMs while ensuring they could still be accessed by law-abiding members of the public.
This reaction reflects a wider argument against a ban on crypto ATMs. While there is a recognition that they are used by criminals, many believe this could be better tackled through tougher regulation. Such an approach, it is claimed, would ensure the same objective as a ban - but would not stifle innovation or prevent crypto ATM use by those who prefer crypto or struggle to gain access to other forms of banking. There is also the fear that banning crypto ATMs could drive illicit activity underground and provoke lengthy debate about the rights of those operating them.
