New Zealand’s government plans to ban crypto ATMs as part of an overhaul of its anti-money laundering and countering the financing of terrorism (AML/CFT) regime.
The government wants to target the means criminals use to “convert cash to high-risk assets such as cryptocurrencies,” according to an announcement by Associate Justice Minister Nicole McKee on Wednesday.
McKee also proposed setting an upper limit of 5,000 new zealand dollar ($3,000) for international cash transfers to make it harder for criminals to move its funds offshore.
The cabinet has introduced a bill to strengthen the police’s enforcement powers and enable regulators to “crack down” on those involved in money laundering, she added.
“The new approach will deliver more clarity and consistency for businesses while maintaining a strong focus on preventing criminal misuse of the financial system,” McKee said in Wednesday’s announcement.
Crypto ATMs allow users to purchase cryptocurrency by inserting cash or a bank card and having crypto delivered to a wallet of their choice. They are somewhat ripe for criminal activity however. Scammers may, for example, advertise goods for sale online, direct their buyer to deposit funds to a specific wallet and then disappear.
As such, they have been subject to stern regulatory oversight in a number of countries, such as New Zealand’s neighbor Australia.
There are around 38,505 crypto ATMS installed worldwide, according to Coin ATM Radar, of which over 30,000 are in the U.S.
New Zealand has 221, according to the same site.
Read more: Australia Cracks Down on Crypto ATM Providers as Scammers Target the Elderly