NZ Crypto ATMs: Balancing Access and Regulation

Crypto ATMs have become increasingly common in New Zealand, with over 200 machines operating nationwide. While they provide access to cryptocurrencies for cash-reliant individuals, concerns have been raised about their potential use by scammers and organized crime groups.

The government has opted for targeted regulation instead of banning crypto ATMs altogether. One-way crypto ATMs, which allow users to buy virtual assets but not sell them, are the most common type in New Zealand. These machines often charge high fees, with typical costs including transaction fees, flat fees, exchange-rate markups, and network fees.

The risks associated with crypto ATMs include fraud, with scammers posing as authorities or technical support staff to persuade victims to deposit cash into the machines. In 2025, the US Federal Bureau of Investigation received over 13,400 complaints involving cryptocurrency kiosks, with reported losses exceeding $388 million.

The government is setting itself new powers to regulate cash transactions involving virtual assets, including transaction limits and restrictions on high-risk virtual assets. Tiered transaction limits, a mandatory cooling-off period, and clear scam warnings are among the measures being considered.