New Zealand’s Associate Minister of Justice, Nicole McKee, has announced plans to completely ban cryptocurrency ATMs in the country as part of efforts to combat money laundering.

According to her, such ATMs are actively used by drug traffickers.

“We need a smarter and more flexible AML/CFT system that will hinder criminals from laundering money. We’re going to make it harder for them to convert cash into high-risk assets, including cryptocurrencies,” McKee stated.

According to Coin ATM Radar, there are currently 221 crypto ATMs operating in the country.

New Zealand will also introduce a $5,000 cap on international transfers to limit illicit funds being moved abroad.

Authorities are currently drafting a bill that will significantly expand the powers of police and regulatory bodies. In particular, it will grant the Financial Intelligence Unit the authority to collect critical information to fight crime and will establish a new oversight regime for financial sanctions to support AML/CFT measures.

At the same time, the government plans to remove unnecessary regulatory requirements for low-risk clients and organizations.

“The government is serious about going after criminals — not bogging down legitimate businesses in needless red tape,” McKee said.

As a reminder, in February 2024, Reserve Bank of New Zealand Governor Adrian Orr expressed strong concerns about cryptocurrencies, calling them “speculative coins” that are “neither a means of exchange, nor a store of value, nor a unit of account.”