New Zealand prohibits crypto money machines to combat money laundering

New Zealand has presented strict new measures against cryptocurrencies and cross-border cash flows as part of a comprehensive revision of its anti-money laundering laws.

The reforms announced on Wednesday by the deputy Minister of Justice Nicole McKee include a complete ban on cryptocurrency automatons and an upper limit of $ 5,000 for international cash transfers, reports Cointelegraph.

Officials argue that these changes are necessary to interrupt the channels used by organized criminals to move illegal funds, especially in drug trafficking and fraud plans. “We will make criminals difficult to convert cash into high-risk assets such as cryptocurrencies by baning crypto cash machines,” said McKee and underlined the government's hard attitude. The changes are part of a more comprehensive update of the New Zealand framework to combat money laundering and terrorism financing (AML/CFT).

Increased monitoring and intelligent regulation to comply with the regulations

The reform package gives the New Zealand Financial Intelligence Unit (FIU) new powers that enable it to request real -time data from financial institutions about suspicious people. Two draft laws are already in parliament and are to be adopted by the end of the year. They aim to modernize the AML/CFT system and at the same time reduce unnecessary regulatory stress on the law. McKee emphasized that the goal was to find a balance – to ensure solid enforcement and at the same time to avoid unnecessary bureaucracy.

“It is not about giving up standards, but rather applying it,” she said, referring to the double approach of the government, which aims at criminal behavior and at the same time supports legitimate economic activities. The reforms are also a reaction to the results of a advisory report from April, which indicates the increasing criminal use of crypto cash machines for rapid money laundering abroad.

Part of a global approach to crypto money machines

The New Zealand measures correspond to a global trend towards increased control of crypto cash machines, which are increasingly associated with illegal financial flows by the authorities. Similar steps were taken in Australia, where the AUSTRAC financial supervisory authority recently introduced an upper limit of 5,000 AUD for crypto automatic transactions and prescribed stricter identity controls. In the meantime, cities such as Spokane, Washington, go even further by issuing a complete ban and ordering the removal of existing crypto money machines because it worries about fraud and the exploitation of weak residents. With over 220 crypto kiosks that are still in operation throughout New Zealand, the ban represents a significant change and could create a precedent for further regulations in the Asian-Pacific region. The step signals the intention of New Zealand in which responsible supervision of cryptocurrencies take a pioneering role and at the same time to approach international standards for fraud and money laundering control.

We recently wrote that the United Kingdom Prepared to introduce stricter tax regulations that aim to avoid taxes from digital assets that try to avoid taxes from digital assets.