The New Zealand government has announced its intention to ban the use of cryptocurrency ATMs as part of a comprehensive update to its anti-money laundering (AML) and counter-terrorism financing (CFT) policies. According to Deputy Minister of Justice Nicole McKee, a new bill is being developed to strengthen the oversight of cash and crypto asset flows in the country.
This is reported by Finway
Strengthening Oversight of Financial Transactions
A key point of the new legislation will be a complete ban on crypto ATMs. This decision aims to make it more difficult for criminals to convert cash into cryptocurrencies, which are considered high-risk assets. Additionally, the document expands the powers of the police and regulators in combating financial crimes and includes the implementation of a new system of financial sanctions.
“We will make it harder for criminals to convert cash into high-risk assets like cryptocurrencies by banning cryptocurrency ATMs,” McKee stated.
Another new measure will be a limit of $5,000 on international money transfers. This restriction is intended to reduce the risk of illegal fund outflows by criminal organizations outside of New Zealand. Furthermore, the Financial Intelligence Unit (FIU) will receive expanded powers to collect data on suspicious individuals and transactions.
Consultations with the Industry and Further Reforms
The government plans to conduct consultations with representatives from the financial and cryptocurrency sectors to develop a strategy for implementing the new measures and ensuring stable funding for the reform through a special levy. This is expected to create an effective and sustainable system for combating money laundering in the country.
It is worth noting that earlier, in February 2024, the head of the Reserve Bank of New Zealand, Adrian Orr, publicly stated that stablecoins are speculative assets, highlighting the cautious approach of the authorities towards cryptocurrency in general.