The New Zealand government has announced its intention to implement stricter measures against money laundering and terrorist financing, which include a complete ban on crypto ATMs. These steps aim to make it more difficult for criminals to convert cash into cryptocurrency, which is considered a high-risk asset.
This is reported by Business • Media
Reform Against Money Laundering and Terrorist Financing
According to Deputy Justice Minister Nicole McKee, the government is preparing a new bill that not only proposes a ban on the installation and use of crypto ATMs but also strengthens the powers of the police and financial regulators. A new system of financial sanctions is planned to be introduced, along with consultations with representatives of the financial industry regarding the establishment of a stable model for funding improvements to the AML/CFT regime.
“We will make it more difficult for criminals to convert cash into high-risk assets like cryptocurrencies by banning crypto ATMs,” McKee stated.
Limits on Transfers and New Powers for Regulators
In addition to the ban on crypto ATMs, the bill proposes to set a limit of $5,000 on international money transfers. This restriction is aimed at complicating the process for criminal organizations to transfer funds abroad. The Financial Intelligence Unit (FIU) will receive enhanced capabilities for gathering information on suspicious individuals and transactions.
The government also plans to work more closely with market representatives to develop a new strategy and implement stable funding for the reform of anti-money laundering and counter-terrorism financing efforts.
It is worth noting that back in February 2024, the Governor of the Reserve Bank of New Zealand, Adrian Orr, referred to stablecoins as a speculative asset.