Canada proposes crypto ATM ban over scams and money laundering

The Canadian authorities has projected banning Bitcoin and different crypto ATMs, arguing the machines person go a superior on-ramp for fraudsters and wealth launderers alternatively than a convenient entree constituent for mundane users.

The government's Spring Economic Update 2026, published connected April 28, says crypto ATMs are a “primary method for scammers to defraud victims and for criminals to spot their currency proceeds of crime,” and explicitly states that the authorities “proposes to prohibition crypto ATMs.”

The connection states that Canadians volition inactive beryllium capable to bargain virtual currencies from brick-and-mortar wealth services businesses, but the standalone kiosks that person proliferated successful malls, state stations and country stores would beryllium phased out.

The determination adds to a broader propulsion by Ottawa to clamp down connected what it frames arsenic retail-facing crypto risks arsenic fraud cases surge, portion bringing much of the integer plus assemblage nether tighter national oversight. Authorities accidental the determination is aimed astatine cutting disconnected 1 of the astir communal channels utilized successful scams that person progressively targeted Canadians.

The argumentation is of peculiar enactment fixed Canada’s aboriginal relation successful the sector. The world’s archetypal publically disposable Bitcoin ATM went live successful a Vancouver java store successful 2013, making Canada the birthplace of the Bitcoin ATM.

Spring Economic Update 2026. Source: Government of Canada

Since then, the state has grown into 1 of the astir crypto-ATM-dense markets globally, a presumption regulators accidental has fixed it disproportionate vulnerability to fraud. Coin ATM Radar data estimates that Canada accounts for 10.1% of planetary crypto ATMs, 2nd lone to the United States.

A months-long CBC probe and interior Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) investigation posted April 28 found that crypto ATMs person go the main method utilized by home and overseas transgression fraudsters to extract wealth from Canadian scam victims and propulsion those funds into the crypto ecosystem.

Law enforcement agencies told CBC they person seen a wide uptick successful cases wherever victims are instructed to provender currency into these machines nether the guise of paying taxation debts, securing romance relationships oregon recovering hacked accounts.

Related: Canada revokes 47 crypto wealth licenses, vows to continue

Ban forms portion of broader crypto regulatory push

The projected ATM prohibition sits wrong a broader effort to tighten controls astir high-risk corners of Canada’s crypto marketplace portion drafting halfway infrastructure much firmly into the regulatory perimeter.

Crypto ATM organisation by continents and countries. Source: Coin ATM Radar

The aforesaid Spring Economic Update bolsters a caller Financial Crimes Agency and gives FINTRAC much tools to garbage oregon revoke registrations for non-compliant wealth services businesses, including crypto companies.

In parallel, Ottawa has enacted a national stablecoin model successful Bill C-15 that makes the Bank of Canada the supervisor and requires fiat-referenced issuers to register, afloat backmost reserves and redeem astatine par, with astir rules kicking successful aft regulations are finalized up of an expected 2027 commencement date.

Lawmakers are besides advancing Bill C-25 to bar cryptocurrency donations successful national politics implicit concerns astir traceability and overseas interference, arsenic the state adopts a regulation-first attack to people retail-facing maltreatment risks and propulsion halfway integer plus rails nether national oversight.

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