NZ Bans Crypto ATMs, Caps Cross-Border Transfers at $5k
New Zealand’s crypto ATM ban has outlawed over 220 domestic kiosks and capped individual cross-border cash transfers at $5,000 under a major AML/CFT reform. The government now requires banks and remittance services to report suspicious transactions to the Financial Intelligence Unit (FIU).
Parliament has fast-tracked two bills to centralize sanctions oversight, boost enforcement powers for police and the FIU, and enforce risk-based customer due diligence for low-risk and specified businesses. By cutting off easy cash-to-crypto conversion, the crypto ATM ban and cash-transfer cap aim to disrupt money laundering and terrorism financing while aligning with global financial crime prevention standards. Traders should monitor shifts in on-ramp liquidity as enforcement tightens.
Bearish
The crypto ATM ban and cash-transfer cap significantly reduce on-ramp liquidity for retail buyers. Tighter AML/CFT rules and mandatory FIU reporting heighten compliance costs for banks and remittance services, potentially depressing trading volumes. In the short term, restricted access at physical kiosks may pressure spot prices as fewer new entrants can enter the market. Over the long term, online on-ramp solutions could mitigate the impact, but immediate constraints point to a bearish outlook for crypto demand in New Zealand.