NZ Considers Regulation of Crypto ATMs Amid Growing Scam Concerns

Crypto ATMs have become increasingly common in New Zealand, popping up in dairies, petrol stations, and vape shops across the country. While they provide a way for people to buy cryptocurrencies like Bitcoin, supporters argue that they also offer an opportunity for scammers to exploit users.

The machines work by allowing customers to deposit cash and receive virtual assets in return. However, unlike traditional online exchanges, crypto ATMs charge heavy fees, often ranging from 6-19 percent of the transaction amount. This can leave buyers with significantly less than they initially deposited.

Concerns about the security risks associated with crypto ATMs have led the government to consider introducing regulations to manage these threats. Some options being explored include tiered transaction limits, a cooling-off period for new users, and stricter verification requirements for customers.