New Zealand Bans All Crypto ATMs to Combat Money Laundering and Drug Activity

HKAN | Jul 26

JUST IN: New Zealand Bans All Crypto ATMs to Tackle Illicit Activity

 

In a major regulatory move, New Zealand has officially banned all cryptocurrency ATMs across the country. The decision is aimed at curbing money laundering and illegal drug-related transactions that authorities say are increasingly facilitated through untraceable digital assets.

 

The nationwide ban is expected to take immediate effect, with operators of existing crypto ATMs being ordered to cease operations and remove machines within a set compliance period.

 

Why the Ban?

According to government officials, crypto ATMs — also known as BTMs — have become a growing concern for law enforcement, particularly due to their lack of strict identity verification and their role in facilitating anonymous, high-risk transactions.

 

Authorities argue that the ban is a proactive measure to prevent digital currencies from becoming a “shadow banking” channel for criminal enterprises.

 

Impact on the Industry

The move is a blow to local crypto adopters who use ATMs for ease of access and cash-based transactions. However, regulators argue that public safety and financial integrity outweigh the convenience factor.

 

Industry analysts believe this action may signal tighter crypto regulations across the Asia-Pacific region, as neighboring countries monitor the situation closely.

 

What’s Next?

The ban could set a precedent for other countries considering similar actions, particularly as concerns about crypto-related financial crimes grow. Meanwhile, crypto firms in New Zealand may be forced to rely entirely on centralized exchanges and fully KYC-compliant platforms.