Why the automatic distributors of crypto tickets were targeted by New Zealand regulators
On July 17, 2025, the New Zealand government made a decisive decision in its current battle against financial crimes: it announced a national ban on automatic distributors of cryptocurrency tickets.
The decision, directed by the associate minister of justice, Nicole McKee, is part of a radical reform of the country’s anti-Enjolive regime and the fight against the financing of terrorism (AML / CFT).
Automatic distributors of cryptographic tickets, kiosks that allow users to convert money into digital active ingredients like Bitcoin (BTC), have long been in a regulatory gray area. According to the Ministerial Advisory Group of New Zealand on transnational, serious and organized crime, the country had more than 220 machines of this type in operation by April 2025. Teralally located in convenience stores, service stations, vape workshops and enemas, these automatic ticket distributors offered easy access to cryptocurrency, often with minimum verification.
This convenience, however, cost a price.
By announcing the ban, McKee underlined clear and growing evidence that the machines had become an organized criminal activity tool.
“These are a solid form of money laundering,” she said in an interview with 1News. “We caught a guy abroad who used crypto to buy methamphetamine to send here, and it was more than 100 kilograms.” A cited affair involved $ 107 million New Zealand dollars ($ 64 million) that would have whitewashed such channels.
The possibility of converting physical money into digital currency and sending it abroad in a few minutes, without significant supervision, made these ideal kiosks for illicit financial flows, including drug trafficking, scams and weapons purchases.
Did you know? In addition to the ATM Crypto ban, Minister Nicole McKee applied a ceiling of $ 5,000 NZ to international cash transfers as part of a wider money laundering strategy.
Coinflip response to the cryptocurrency of the New Zealand crypto
Coinflip, the largest automatic crypto ticket office supplier in New Zealand, with around 120 machines, expressed himself dismay, calling him “one step back for the digital economy”.
The company argued that a more nuanced regulatory approach could have achieved government objectives without stifling innovation.
“We believe that the government can achieve its objectives while encouraging innovation by implementing intelligent and effective regulations that target bad actors,” Coinflip said in a statement.
They proposed alternatives such as portfolio, photographic files and pre-transaction risks to mitigate criminal use while preserving legitimate access. This tension between risk attenuation and digital innovation is at the heart of global debates on cryptocurrency policy.
Is Bitcoin legal in New Zealand?
Yes, Bitcoin is legal in New Zealand. Individuals can buy, sell and hold cryptocurrencies freely, but they are not considered a legal.
Instead, digital assets like Bitcoin are classified as property under the New Zealand law, which makes them taxable. Income derived from trading or exploitation of cryptography is subject to income tax, and companies operating in the sector must register and comply with anti-white and financial driving regulations.
The government’s approach has been cautious but progressive: rather than banning digital assets, it integrates them into existing legal frameworks. Although consumer protections remain limited, users are encouraged to deal with suppliers registered for additional appeal.
This legal clarity allows innovation to flourish, but it is with responsibility. While New Zealand is moving to prohibit automatic distributors of cryptographic tickets, the wider message is clear: cryptocurrency is welcome, but criminal abuse is not. Bitcoin can be legal, but the surrounding environment becomes more closely controlled.
Did you know? An Australian retired police officer lost more than 40 million Thai baht ($ 1.1 million) in a cryptographic scam after being attracted to a false investment by a German national in Thailand.
LMA / CFT wider reforms in New Zealand
The cryptographic ATM prohibition is only a facet of a larger AML / CFT reform package introduced by McKee on July 9, 2025.
Other key measures include:
- A ceiling of $ 5,000 NZ on international cash transfers, aimed at disrupting the flow of criminal funds abroad.
- Improvement of data sharing powers for the financial intelligence unit, which allows it to request real -time information from financial institutions on people under survey.
- Rationalized compliance bonds for low -risk businesses, intended to facilitate regulatory charges without compromising the application force.
“Since 2019, the global financial and regulatory landscape has evolved considerably,” noted McKee. “We need a smarter and more intelligent AML / CFT system, the one that targets the ability of criminals to wash money, while allowing New Zealand companies to operate effectively and competitively.”
This double mandate, agility in the application and equity in compliance, underlines government efforts to protect the financial system without stifling the legitimate business.
How does New Zealand compare international?
New Zealand joins a global wave of Atm Crypto repression, opting for a complete ban while peers like Australia are more strict regulation.
The prohibition of New Zealand is placed among a growing list of countries adopting difficult positions on automatic distributors of cryptographic tickets.
- United Kingdom (2022): The Financial Conduct Authority (FCA) has indeed prohibited automatic cryptographic ticket distributors by refusing to dismiss such services under the Silver Money Subscribe Regulations. The few kiosks that operated were considered illegal and subject to executive measures.
- Singapore (2022): The Singapore monetary authority has placed a moratorium on automatic distributors of cryptographic tickets in the context of a broader repression of unregulated digital assets, citing public risks and market integrity.
- China (2017): A radical ban on almost all cryptocurrency transactions, including ATM operations, has been applied within the framework of national financial security measures.
On the other hand, Australia, the regulatory peer closest to New Zealand, opted for a more progressive approach. In June 2025, the Australian Transaction Reports and Analysis Center (Austrac) introduced new rules of conformity for Cryptographic ATM operators.
These included a cash deposit and a withdrawal ceiling of 5,000 Australian dollars ($ 3,260), improved KYC checks and compulsory scam alerts. Rather than banning machines, Australian regulators have focused on making them safer and more transparent.
New Zealand, however, has chosen a cleaner and more final route.
