New Zealand government plans to ban crypto ATMs as part of an overhaul of its anti-money laundering and anti-terrorist financing (AML/CFT) regime.
The government wants to target the means used by criminals to “convert cash into high-risk assets such as cryptocurrencies.” Announcement by Deputy Secretary Nicole McKee Wednesday.
McGee also proposes to set the cap to 5,000 NZD ($3,000) To make international cash transfers more difficult for criminals to move their funds overseas.
She added that the Cabinet has introduced a bill to strengthen police enforcement powers and enable regulators to “destroy” those involved in money laundering.
“This new approach will bring greater clarity and consistency to businesses, while firmly focusing on preventing criminal abuse of the financial system,” McGee said in a statement on Wednesday.
Crypto ATM allows users to purchase cryptocurrencies by inserting cash or bank card and delivering cryptocurrencies to their wallet of choice. However, they are somewhat mature in criminal activities. For example, a scam might promote items for sale online, direct their buyer to deposit funds into a specific wallet, and then disappear.
Therefore, they are subject to severe regulatory oversight in many countries, For example, New Zealand’s neighbor Australia.
Approximately 38,505 cryptocurrency ATMs are installed worldwide According to the ATM radarof which more than 30,000 are in the United States
According to data from the same website, there are 221 in New Zealand.
Read more: When the scammers target the elderly
