New Zealand’s government banned cryptocurrency ATMs nationwide on July 17, 2025, as part of an AML/CFT reform. The decision was made due to evidence linking the machines to organized crime activities, including a case of $64 million allegedly laundered through the ATMs.

CoinFlip, the largest crypto ATM provider in New Zealand, expressed disappointment at the ban, suggesting alternative regulatory measures to address criminal use while fostering innovation. The tension between risk mitigation and digital innovation is a key issue in global cryptocurrency policy debates.

Bitcoin is legal in New Zealand, classified as property under the law. The government integrates digital assets into existing frameworks, taxing income from crypto trading and mining. While consumer protections are limited, dealing with registered providers is encouraged for added recourse.

New Zealand’s AML/CFT reforms, including a $5,000 cap on international cash transfers and enhanced data sharing powers, aim to disrupt criminal financial flows while supporting legitimate businesses. The government seeks a smarter, agile system to combat money laundering without hindering enterprise.

New Zealand’s ban on crypto ATMs aligns with global trends, joining countries like the UK, Singapore, and China in cracking down on the machines. In contrast, Australia opted for stricter regulation instead of a ban, focusing on enhancing safety and transparency for crypto ATM operators.

Read more at Cointelegraph: Crypto ATMs were just banned in New Zealand: Here’s why it matters