The New Zealand government has announced the introduction of new legislation aimed at banning crypto ATMs in the country. This decision is part of a broader reform of anti-money laundering legislation.
Reasons for the Crypto ATM Ban
The government asserts that tightening control is necessary to disrupt the flow of illicit funds and criminal operations. The current network of 221 crypto ATMs has come under scrutiny for allegedly facilitating money laundering, particularly in connection with drug trafficking and transferring dirty money abroad.
Industry Reaction to the Bill
Deputy Justice Minister Nicole McKee announced that authorities will now have broader investigative powers, and intelligence agencies will gain new access to financial data to better monitor suspicious activity. Easy Crypto co-founder Janine Grainger welcomed the move, noting the need for better oversight of crypto ATMs. Meanwhile, Giottus exchange founder Arjun Vijay pointed out the lack of identity checks as a key vulnerability.
Global Trends in Crypto ATM Regulation
New Zealand is not alone in its concerns: similar actions are being taken abroad. In Spokane, USA, crypto kiosks have been entirely banned due to a rise in fraud cases. In Australia, regulators have ramped up monitoring of crypto transactions amid a spike in scam activity targeting seniors.
Thus, New Zealand's new legislation is viewed by some officials and industry players as a step towards creating a safer, more regulated crypto environment.
