🇳🇿 New Zealand Bans Crypto ATMs — Here’s Why It Happened

[tradelikepro]

On July 17, 2025, New Zealand dropped a bomb on its local crypto scene: a nationwide ban on all cryptocurrency ATMs. That’s right — no more Bitcoin kiosks at gas stations, vape shops, or laundromats.

So what sparked this drastic move? Let’s break it down.
Why the Ban?

According to Associate Justice Minister Nicole McKee, the ATMs had become prime tools for money laundering and organized crime. She cited one case involving over $64 million NZD allegedly washed through these machines.

“We caught a guy overseas who used crypto to buy meth to send here — over 100kg of it,” McKee told 1News.

Crypto ATMs allowed people to convert physical cash into Bitcoin and send it across borders in minutes, often without proper identity checks. That’s great for convenience… but also great for drug dealers, scammers, and gunrunners.
What Was the Scale?

By April 2025, New Zealand had over 220 crypto ATMs in operation. CoinFlip, the country’s largest provider, ran around 120 of them. These machines were popular in all the usual low-key spots: corner stores, petrol stations, laundromats.
Goodbye Crypto Convenience?

Not everyone is cheering. CoinFlip responded quickly, calling the move “a step backward for the digital economy.” They pushed for smart regulation instead of a blanket ban:

Wallet pinning

Photographic ID

Pre-transaction monitoring

“We believe the Government can achieve their goals while also encouraging innovation,” CoinFlip said.

This highlights the ongoing global tension: How do you stop bad actors without choking crypto innovation?
🧾 So Is Bitcoin Still Legal in NZ?

Yes. You can still buy, sell, and hold crypto in New Zealand — but it’s not legal tender. Bitcoin is classified as property, which means:

💰 It's taxable

🧾 Profits from trading/mining = income tax

🛡️ Crypto businesses must follow AML and compliance rules

🧠 TL;DR

🇳🇿 NZ banned crypto ATMs on July 17, 2025

🚨 Reason: Used for money laundering, drug smuggling, and crime

💬 CoinFlip: “Regulate, don’t eliminate.”

🪙 Bitcoin is still legal — just not as easy to buy at a kiosk.

What do you think? Was this a necessary crackdown, or a heavy-handed move that hurts adoption? Drop your thoughts below.