Canada proposes ban on crypto ATMs as fraud cases mount

MarketsShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailCanada proposes ban on crypto ATMs as fraud cases mountCanada's Liberal government calls machines a “primary method” for scams as data and law enforcement link them to rising lossesBy Sam Reynolds|Edited by Omkar Godbole Apr 29, 2026, 5:14 a.m. Make preferred on What to know: Canada’s Liberal government has proposed a nationwide ban on bitcoin and other crypto ATMs as part of a broader effort to combat fraud and money laundering.Officials say crypto ATMs have become a “primary method” for scammers to defraud victims and for criminals to launder illicit cash, citing findings from the financial intelligence agency FINTRAC.The move comes as lawmakers also weigh banning crypto as a form of electoral donations, even though Canada hosted the world’s first bitcoin ATM in Vancouver in 2013.Canada is proposing to ban crypto ATMs as part of a broader crackdown on fraud and money laundering, citing growing evidence that the machines have become a key tool for scammers.The measure, included in the Liberal government's Spring Economic Update released Tuesday, would eliminate crypto ATMs nationwide. Officials described the machines as a "primary method" for defrauding victims and laundering illicit funds."To protect Canadians by shutting down a primary method for scammers to defraud victims, and for criminals to place their cash proceeds of crime," the government said, it plans to prohibit the machines entirely.A crypto ATM (automated teller machine) may sound similar to a traditional cash machine that dispenses money from your bank account, but it works very differently. Instead of withdrawing cash, these machines let users convert physical cash into cryptocurrencies like bitcoin, which can then be sent to a digital wallet anywhere in the world, while bypassing traditional banking channels. That’s where the money-laundering risk comes in.The proposal follows mounting concerns from law enforcement and…

Canada proposes ban on crypto ATMs as fraud cases mount

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