Crypto ATMs to get guardrails, not the guillotine

The Government will not proceed with a blanket legislative ban on crypto ATMs, instead taking a targeted and proportionate approach to reducing the criminal misuse of virtual assets, says Associate Justice Minister Nicole McKee.

In June 2025, Cabinet agreed in principle to ban crypto ATMs, subject to further policy analysis. That analysis has now been completed and found that a more flexible approach is available.

“Banning something is a serious decision that should not be taken lightly. Cabinet has now considered the evidence and agreed that a blanket ban is not the right response at this time,” says Mrs McKee.

“Crypto ATMs present real risks, particularly where criminals use cash to move funds into virtual assets quickly and anonymously. But the analysis also found they can have legitimate uses, including for cash-reliant New Zealanders who want to access or invest in virtual assets.

"New Zealand should be a country that welcomes innovation while taking criminal misuse seriously. That is why Cabinet’s earlier decision was made in principle and subject to further analysis. If there was a less restrictive way to manage the risks, we wanted to find it.

“Instead of an outright ban, Cabinet has agreed to establish regulation-making powers that would allow the Government to place restrictions on cash transactions for virtual assets. These could include maximum transaction thresholds or, if clear evidence of harm emerges in New Zealand, prohibit cash payments for high-risk virtual assets.

“This gives the Government practical tools to respond to risk while preserving space for legitimate business, investment, and personal choice.

“These decisions form part of the Government’s wider reform of New Zealand’s Anti-Money Laundering and Countering Financing of Terrorism system, aimed at making it easier to do business and harder to commit crime.

“Cash remains attractive to organised crime because it is difficult to trace. When cash is converted into virtual assets, such as cryptocurrencies, criminals can move funds rapidly across borders in ways that are difficult for law enforcement to detect or disrupt.

“That is why we are not ignoring the risks. We are putting practical tools in place so the Government can act quickly if the evidence justifies it, while avoiding unnecessary restrictions on lawful users.

“I have asked officials to consult with crypto providers and users on options for implementing protections that strike the right balance."

The AML/CFT (Omnibus) Amendment Bill will be introduced later this month and will incorporate a regulation making power to give effect to this decision. ...