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New Zealand has declared war on crypto ATMs and organized crime, implementing a nationwide ban on cryptocurrency kiosks and strict new limits on international cash transfers.
The dramatic move comes as authorities report increasing instances of drug cartels and fraud syndicates exploiting these machines for money laundering operations.
Associate Justice Minister Nicole McKee announced the measures Wednesday as part of a major overhaul of the country’s Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) regime.
“We’re shutting down the pipeline between crypto ATMs and organized crime,” McKee stated bluntly at a press conference in Wellington.
The ban takes immediate effect, forcing the closure of more than 220 machines currently operating nationwide. Financial crime experts say the action shows how crypto ATMs and organized crime have become dangerously intertwined in recent years.
According to a damning April report from New Zealand’s Ministerial Advisory Group, crypto ATMs and organized crime formed a perfect partnership for illicit finance.
The machines’ ability to instantly convert cash to cryptocurrency with minimal identification requirements made them ideal for laundering drug profits and scam revenues.
“Criminals were walking into malls with duffel bags of cash and walking out with untraceable cryptocurrency,” explained financial crimes investigator Sarah Chen. “The speed and anonymity of crypto ATMs and organized crime operations were staggering – we’re talking millions laundered in minutes.”
Coin ATM Radar data shows New Zealand’s crypto kiosks were processing over NZ$20 million monthly before the ban. Authorities estimate that at least 40% came from suspicious sources tied to crypto ATMs and organized crime networks.
Alongside the ban, New Zealand is granting its Financial Intelligence Unit (FIU) unprecedented monitoring authority:
Real-time transaction tracking for all crypto exchanges
Mandatory reporting of cash transfers exceeding $5,000
Expanded powers to freeze suspicious assets
“Crypto ATMs and organized crime groups won’t find safe harbor here anymore,” warned FIU director Mark Robertson. “We’ll be watching every major transaction moving forward.”
Two new AML reform bills currently before parliament will cement these changes when passed later this year. While some privacy advocates have raised concerns, McKee insists the measures target only criminal activity:
“This is about stopping crypto ATMs and organized crime, not legitimate crypto users.”
New Zealand’s crackdown reflects an international trend as regulators connect crypto ATMs and organized crime worldwide:
Australia imposed strict $3,250 transaction limits last month
Spokane, Washington, banned all crypto ATMs in April
UK regulators are considering similar restrictions
“Crypto ATMs and organized crime have become the new frontier of money laundering,” said Interpol financial crimes unit head David Carlisle. “New Zealand’s actions will likely inspire other nations to follow suit.”
As authorities dismantle this financial pipeline, experts warn that criminals may shift to peer-to-peer transactions or offshore accounts.
Still, the elimination of crypto ATMs and organized crime channels represents a significant victory for financial regulators.
