New Zealand to Ban Crypto ATMs, Cap Transfers at $5,000

Associate Justice Minister Nicole McKee announced New Zealand’s ban on cryptocurrency ATMs while imposing a $5,000 limit on international cash transfers. This measure is part of broader reforms targeting financial crime.

The policy aims to diminish the outflow of illicit funds while maintaining business-friendly regulations. These actions come as part of the government’s intent to tackle criminal financing.

New Zealand Bans Crypto ATMs to Combat Crime

Nicole McKee, the Associate Justice Minister, revealed the anti-money laundering reforms on July 9, 2025. The planned legislation seeks expanded powers for police and regulators to address financial crime, alongside a levy to enhance the existing enforcement framework.

The reforms will halt the use of 220+ crypto ATMs and impose a $5,000 limit on international cash transfers. These actions are designed to curb the flow of criminal finances. Despite these restrictions, New Zealand intends to maintain easy operations for legitimate businesses with insights from the Reserve Bank’s unconventional monetary policy.

“This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape… Cabinet has agreed to introduce a bill to strengthen enforcement powers for Police and regulators to crack down on those involved in money laundering… An upper limit will be set on how much cash can be transferred internationally ($5,000 per transfer), reducing the ability of the criminal organization to move its funds offshore.” — Nicole McKee, Associate Justice Minister, Government of New Zealand

The cryptocurrency community remains cautious, with no immediate comments from major leaders. Some industry experts highlight potential liquidity issues locally, as reduced ATM access could limit cash-based inflows of digital assets.

Bitcoin and Ethereum React to Regulation Changes

Did you know? Similar bans in Canada and Australia led to decreased anonymous crypto access, impacting BTC and ETH transaction volumes temporarily.

Bitcoin (BTC) is valued at $108,791.96, with a market cap of 2,163,836,816,589. BTC shows a positive trend, with a 0.59% rise in 24 hours and a notable 32.37% increase over 90 days. Trading volumes reached 41,792,475,492 with a 9.06% drop.

Analysts from Coincu indicate that New Zealand’s regulations could indirectly pressure liquidity in the crypto market. By limiting anonymous cash transactions through ATMs, authorities aim to deter unlawful funding flows, potentially affecting stabilized coin assets like USDT.