They’re tucked away in dairies, petrol stations and vape shops from Auckland to Invercargill – and, at first glance, they look like ordinary cash machines.

Rather, they’re cryptocurrency ATMs. Increasingly, they have come to represent one of New Zealand’s trickiest anti-money laundering challenges.

Although New Zealand first experimented with cryptocurrency ATMs more than a decade ago, they remained a novelty until 2023, when commercial operators began rolling out permanent networks. Today, there are around 200 nationwide.

With their expansion has come concerns that the machines can be exploited by scammers and organised crime groups to convert cash into virtual assets that are difficult to trace.

Supporters, meanwhile, argue they provide a way for cash-reliant New Zealanders to access cryptocurrencies and other digital payment technologies.

Those competing concerns prompted the government to consider banning crypto ATMs altogether. Instead, it has opted for targeted regulation, arguing the risks can be managed without removing legitimate access.

Whether these machines become a legitimate part of the country’s financial system, or a growing source of consumer harm and criminal misuse, will ultimately depend on whether the right guardrails are put in place.

What are crypto ATMs?

Cryptocurrencies are digital assets that can be transferred without relying on a central bank or conventional banking system, and their use has grown rapidly around the world.

The ATMs that provide access to........

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