By PAUL O’DONOGHUE, Senior Correspondent
CANADA plans to ban crypto ATMs as part of a wider effort to tackle fraud and money laundering, the government has announced.
The government’s the Spring Economic Update said the machines have become “a primary method for scammers to defraud victims and for criminals to place their cash proceeds of crime”.
“To protect Canadians, the Spring Economic Update 2026 proposes to ban crypto ATMs,” it said.
The country currently has nearly 4,000 crypto ATMs, the highest number per capita globally.
Crypto ATMs allow users to deposit cash and convert it into digital assets such as Bitcoin. They can then transfer funds to virtual wallets, often with limited identity checks. Transactions are fast, and smaller deposits may only require a phone number.
Authorities say these features make the machines attractive to fraudsters. Victims are often instructed to deposit cash and send funds to wallets controlled by criminals. Unlike banks, there is typically no staff interaction to detect suspicious behaviour.
Canada’s financial intelligence unit, FINTRAC, identified crypto ATMs as a key channel for fraud in a 2023 analysis of suspicious transaction reports. A separate media investigation by CBC News also found the machines had become a central tool for scams across the country.
Canada crypto ATMs ban
The proposed ban would remove crypto ATMs from the market, although the government said Canadians would still be able to buy digital currencies through “brick-and-mortar MSBs”. These businesses include foreign exchange dealers and money transfer services.
The announcement comes amid rising fraud losses. Canadians reported more than $704 million in fraud losses in 2025, while total reported losses since 2022 exceed $2.4 billion. Authorities estimate this represents only a fraction of actual cases.
Other jurisdictions have taken similar steps. The UK has effectively banned crypto ATMs through its licensing regime, while New Zealand is considering restrictions. Australia has introduced transaction limits, and several U.S. states have imposed controls such as caps on fees and refund requirements.
Finance Minister François-Philippe Champagne said the measure forms part of a broader crackdown on financial crime, alongside plans to establish a new Financial Crimes Agency.
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