NZ Regulators Crack Down on Crypto ATM Scams

Crypto ATMs have become increasingly popular in New Zealand, with over 200 machines installed nationwide. While they provide an alternative for cash-reliant individuals to access digital payment technologies, concerns about scams and organized crime groups exploiting them are growing.

The machines work similarly to traditional cash machines, allowing users to deposit cash and purchase cryptocurrencies like Bitcoin or stablecoins. However, the fees associated with using crypto ATMs can be substantial, ranging from 6-19% transaction fees, flat fees of NZ$1-5, exchange-rate markups of 5-10%, and network fees.

The New Zealand government has decided to regulate these machines instead of banning them. Tiered transaction limits are being considered, with smaller purchases remaining largely unconstrained while larger transactions trigger additional checks. A mandatory cooling-off period or confirmation call from the operator could also disrupt the urgency scammers rely on.