New Zealand has enacted a nationwide ban on cryptocurrency ATMs, effective July 17, 2025, as a key component of its comprehensive Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regime reform. Associate Justice Minister Nicole McKee spearheaded the decision, citing clear evidence that these machines have become a significant tool for organized criminal activity.
By April 2025, New Zealand had over 220 crypto ATMs in operation, typically found in convenience stores, petrol stations, vape shops, and laundromats. These kiosks allowed for easy conversion of cash into digital assets like Bitcoin, often with minimal identity verification. McKee stated that “These are a sound form of money laundering,” highlighting a case where NZ$107 million ($64 million) was allegedly laundered through such channels. She also provided an example of an individual overseas using crypto to purchase over 100 kilograms of methamphetamine for import into New Zealand.
The ban is part of a broader strategy that also includes a NZ$5,000 cap on international cash transfers to disrupt the flow of criminal funds offshore. Other AML/CFT reforms introduced by McKee on July 9, 2025, involve enhanced data sharing powers for the Financial Intelligence Unit, allowing real-time information requests from financial institutions, and streamlined compliance obligations for low-risk businesses.
CoinFlip, New Zealand’s largest crypto ATM provider with approximately 120 machines, expressed dismay at the ban, calling it “a step backward for the digital economy.” The company argued for a more nuanced, regulatory-based approach, suggesting alternatives such as wallet pinning, photographic records, and pre-transaction risk monitoring to mitigate criminal use while preserving legitimate access.
Despite the ATM ban, Bitcoin remains legal in New Zealand. It is classified as property under New Zealand law, not legal tender, and is therefore taxable. Income derived from crypto trading or mining is subject to income tax, and businesses in the sector must comply with AML and financial conduct regulations. The government’s approach aims to integrate digital assets into existing legal frameworks, emphasizing that while cryptocurrency is welcome, its criminal misuse is not.
New Zealand’s decision aligns with a global trend of stricter regulations or bans on crypto ATMs. The United Kingdom effectively banned them in 2022 by refusing to license such services, and Singapore placed a moratorium on them in the same year. China enforced a sweeping ban on nearly all cryptocurrency transactions, including ATM operations, in 2017. In contrast, Australia, a close regulatory peer, adopted a more incremental approach in June 2025, introducing new compliance rules for crypto ATM operators, including a cash deposit and withdrawal cap of A$5,000 ($3,260), enhanced KYC checks, and mandatory scam alerts, rather than an outright ban.
