New Zealand Bans Crypto ATMs to Combat Money Laundering

The post New Zealand Bans Crypto ATMs to Combat Money Laundering appeared first on Coinpedia Fintech News

Due to rising financial crimes, the New Zealand government took a bold step to ban crypto ATMs and cap international cash transfers at $5,000. As the officials noted that crypto kiosks mainly attract users seeking anonymity to covert illegal funds, the industry leaders supported the government’s decision to ban Bitcoin banks.

New Zealand Government’s Strict Action on Money Laundering

Associate Justice Minister Nicole McKee announced the decision on Wednesday.  The legislation is creating a bill that expands powers for police and regulators to address financial crime in the country. McKee emphasised that the government is serious about targeting criminals and enforcing the powers of regulators to crack down on money laundering criminals.

She stated, “We are committed to combating illicit fund flows and criminal activities associated with cash and cryptocurrency.”

Key Highlights of the Crypto Kiosks Ban in New Zealand

• Ban on Cryptocurrency ATMs: The reform will halt the use of approximately 220 crypto ATMs in the country. It aims to mitigate any illicit use of financial systems

• Targeting Offshore Crypto Crimes: After the Ministerial Advisory Group on Transnational, Serious and Organised Crime highlighted that criminals often use crypto ATMs to trade with offshore criminals for funding drug import and scams, the government took immediate action to ban crypto ATMs.

• Limiting International Transfers: In order to curb money laundering and criminal finance, New Zealand is capping international transfers at $5,000. This move will also enhance the country’s financial surveillance capabilities.

Enforcing AML and CFT in New Zealand

Nicole McKee assured that the new approach will develop more clarity and consistency for businesses while preventing criminal misuse of financial systems. Moreover, the government will also enable the Financial Intelligence Unit (FIU) to oversee the ensure of anti-money laundering ( AML) and combating terrorism in finance (CFT) compliance in businesses.

New Zealand Aspires to Be the Most Secure Region for Crypto

During the press release, the Associate Justice Minister stated that New Zealand is determined to become the easiest place in the world for legitimate crypto trading. The country is motivated to implement stricter laws to make the country one of the hardest regions for criminals to hide.

“By cutting unnecessary red tape, we’re giving honest businesses room to grow, while sharpening our focus on serious threats,” Nicole McKee says.

Final Thought

Janine Grainger, co-founder of Easy Crypto, a New Zealand-based crypto trading platform, applauded the government’s decision to ban crypto ATMs, ensuring customer safety and compliance. Many other industry leaders have commended the crackdown, viewing it as a necessary step to terminate crypto crime altogether.