New Zealand Crypto ATM Ban: Govt Tightens Rules to Curb Illicit Cash Flows

Key Points

1. New Zealand officials claim crypto ATMs facilitate anonymous transactions and money laundering, bypassing traditional Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) measures.

2. The ban will require all existing crypto ATMs to be removed by December 2025.

3. Crypto users will need to rely more on regulated exchanges with strict ID checks, raising barriers for casual or unbanked users.

4. New Zealand's Minister of Justice, Paul Goldsmith, stated the ban aims to close loopholes used by criminals to move illicit funds, aligning with FATF global standards.

5. The ban may lead to stricter future regulations, including tighter KYC checks, stricter licensing for exchanges, and closer alignment with global anti-fraud standards.