New Zealand Moves to Ban Cryptocurrency ATMs in Fight Against Money Laundering

The Deputy Minister of Justice of New Zealand, Nicole McKee, has announced plans to impose a complete ban on cryptocurrency ATMs in the country as a measure against money laundering.

According to her, these machines are frequently exploited by drug traffickers.

«We need a more effective and flexible Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) system that will make it difficult for criminals to launder money. We will complicate their ability to convert cash into high-risk assets, including cryptocurrencies,» McKee stated.

As reported by Coin ATM Radar, there are currently 221 cryptocurrency ATMs operating in New Zealand.

Furthermore, New Zealand will introduce a $5,000 cap on international money transfers to curb illegal outflows of funds abroad.

Authorities are presently drafting legislation that will significantly enhance the powers of law enforcement and regulatory agencies. This legislation will empower the Financial Intelligence Unit to gather critical information in the fight against crime and will establish a new supervisory framework for financial sanctions to support AML/CTF efforts.

At the same time, there are plans to eliminate unnecessary regulatory requirements for lower-risk clients and businesses.

«The government is fully committed to tackling criminals rather than burdening legitimate businesses with excessive bureaucratic red tape,» McKee remarked.

It’s worth noting that in February 2024, the Governor of the Reserve Bank of New Zealand, Adrian Orr, expressed deep concerns regarding cryptocurrencies, labeling them as «speculative coins» that serve «neither as a medium of exchange, nor as a store of value, nor as a unit of account.»