New Zealand Bans Crypto ATMs in Crackdown on Scams
New Zealand becomes the latest country to ban crypto ATMs to disable scammers from exploiting vulnerable citizens.
New Zealand is the newest country to break up with crypto ATMs and put international cash transfers on a diet. In an extremely innovative move that is set to rattle scammers across at least three continents, Spokane City Council in Washington also banned crypto ATMs in June.
As part of a sweeping reform to its Anti-Money Laundering and Countering the Financing of Terrorism regime, Associate Justice Minister Nicole McKee declared the bane of the existence of these financial villains across the country. In addition, international transactions exceeding $5,000 will also be restricted.
McKee says:
“This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape, we will also make it more difficult for criminals to convert cash to high-risk assets such as cryptocurrencies by banning crypto ATMs.”
In other words, if your business is related to crypto theft exclusively using crypto ATMs, you should really worry.
Currently, New Zealand boasts over 220 crypto ATMs. Soon, however, those kiosks will be as extinct as decaf espresso in a tech bro café.
New Powers, Fewer Loopholes, More Paperwork (But Smarter!)
As part of the crackdown, New Zealand’s Financial Intelligence Unit (FIU) will gain the power to demand ongoing intel from banks and financial entities on anyone behaving a little too crypto-curious.
In a very “digital” move, two AML reform bills are reportedly already lounging in Parliament, expected to pass before the year ends.
According to McKee, these will “remove some of the most burdensome compliance requirements, delivering practical relief for businesses by the end of the year.”
“This is not about dropping standards; it’s about applying them intelligently,” she added.
The Global ATM Exorcism Continues
New Zealand is hardly alone in giving crypto ATMs the long goodbye. Australia has also imposed a AU$5,000 cash limit on deposits and withdrawals and added more monitoring.
In Washington, officials have imposed a complete ban and planned removal of crypto ATMs, citing their use in scams targeting vulnerable residents, believing that would cripple scammers.
In the meantime, New Zealand authorities have advised law-abiding citizens to sit tight, trust the process, and maybe get used to explaining their bank transfers to increasingly curious government agencies.