New Zealand has introduced a new bill that places a blanket ban on cryptocurrency ATMs. Associate Justice Minister Nicole McKee announced the decision on Wednesday. The move aims to further the government’s efforts to combat financial crime. In a press release, McKee stated, “We will also make it more difficult for criminals to convert cash to high-risk assets such as cryptocurrencies by banning crypto ATMs.“
Will Cryptocurrency Businesses Be Affected?
McKee clarified that the New Zealand government is not trying to create barriers for legitimate businesses. She stated, “The new approach will deliver more clarity and consistency for businesses while maintaining a strong focus on preventing criminal misuse of the financial system.“
Apart from banning cryptocurrency ATMs, the country will also put a cap of $5000 (per transfer) on international transactions.
The bill will also enable the Financial Intelligence Unit (FIU) to order banks and other businesses subject to the AML/CFT Act to provide information on persons of interest.
Will The Move Help Combat Financial Crimes?
There is no denying the prevalence of criminal players within the cryptocurrency space. In 2024, about $2.2 billion worth of crypto was stolen in hacks and exploits. The figure represents a 17% increase from 2023.
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Illicit players also use cryptocurrencies to escape the legal financial system. A ban on crypto ATMs and a cap on international transfers could hamper criminal enterprises. However, there is also a chance that legitimate businesses will also be affected. How the law pans out is yet to be seen.
McKee further added, “We want New Zealand to be one of the easiest places in the world to do legitimate business and one of the hardest for criminals to hide. By cutting unnecessary red tape, we’re giving honest businesses room to grow, while sharpening our focus on serious threats.“