New Zealand Ban Bitcoin ATMs to Fight Money Laundering

Authorities Explain Why New Zealand Ban Bitcoin ATMs

New Zealand Ban Bitcoin ATM  Shakes Crypto Community

In an attempt to stop money laundering and the funding of terrorists, New Zealand Ban Bitcoin ATMs in the nation. These devices are dangerous instruments for illegal activity, according to authorities, because they allow cash transactions without what they believe to be sufficient identity checks. In order to restrict other avenues for money transfers, the authorities also implemented a $5,000 ban on overseas cash transactions in addition to closing 220 ATMs.

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The main reason due to which New Zealand Ban Bitcoin ATMs, is to limit the total amount of money that may be transferred offshore in a single transaction, which will make it harder for criminal groups to move big sums of money covertly.The proposed reforms aim to shift AML/CFT compliance requirements for legitimate enterprises to allocate resources towards higher-risk companies.

The move was led by Nicole McKee, Associate Minister of Justice, who stated:  “We will make it more difficult for criminals to convert cash into high-risk assets such as cryptocurrencies by banning crypto ATMs. This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape.”

Recent cases of Money Laundering with cryptocurrency 

Australian authorities have exposed a crypto crime organization that laundered $123 million, with four suspects charged. The money was then converted into cryptocurrencies, revealing a complex scheme. In the meantime, Spokane, Washington, has declared that cryptocurrency ATMs are strictly prohibited. The Spokane City Council will shut down current kiosks and prohibit the installation of new ones, citing the fact that scammers utilize them to target vulnerable citizens, especially in low-income areas. Ahmedabad Cyber Crime Branch and Binance collaborated to combat a Digital Arrest Crypto Scam targeting South and Southeast Asia. The scammers posed as law officials and forced victims to transfer large amounts of cryptocurrency.

Financial Intelligence Unit Granted Powers to Monitor Crypto Activity

The Financial Intelligence Unit  granted authority to track financial activity and collect information on individuals of interest, this will increase the involvement of police and regulatory agencies. The idea of charging a fee to fund the system is being explored by the NZ authorities. The regulatory tightening comes after the Ministerial Advisory Group on Transnational, Serious and Organised Crime reported in April that criminals were using cryptocurrency ATMs to swiftly transfer money offshore. There are already more than 221 cryptocurrency ATMs in NewZealand. As regulators work to close gaps that criminal actors have taken advantage of, these computers will now be shut down completely. New Zealand Ban Bitcoin will surely results in less crypto crime in country.

How New Zealand Ban Bitcoin ATMs act will impact crypto users

This could be a sign that more countries will follow stricter rules on crypto and cash. Web3 might be borderless but regulators are drawing lines. New Zealand Ban Bitcoin could significantly restrict users' access to cryptocurrencies, particularly for those who rely on physical kiosks for on-ramping and off-ramping. Without 220+ machines, users will face increased friction, KYC scrutiny, and fewer opportunities for quick fiat-to-crypto conversion. This move is part of a broader trend towards more regulation of cryptocurrencies, suggesting governments are strengthening restrictions over entry points into decentralized finance (DeFi). Despite Web3's continued borderlessness, authorities are drawing new lines that limit cryptocurrency freedom.