Canada proposes banning 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 fraudsters.
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” of 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 from crime,” the government said, it plans to ban the machines entirely.
A crypto ATM may look similar to a traditional ATM that dispenses money from your bank account, but it works very differently. Instead of withdrawing cash, these machines allow users to convert physical cash into cryptocurrencies like bitcoin, which can then be sent to a digital wallet anywhere in the world, bypassing traditional banking channels. That’s where the risk of money laundering comes in.
The proposal comes following growing concerns from authorities and regulators that crypto ATMs have become central to fraud schemes.
An internal analysis conducted in 2023 by Canada’s financial intelligence agency FINTRAC found that bitcoin ATMs are likely to remain “the primary method” scammers use to collect and launder funds from victims.
Canadian lawmakers are debating banning cryptocurrencies as a payment method for election donations, citing concerns about the anonymity of fund transfers.
Canada was home to the first bitcoin ATM, installed in a downtown Vancouver coffee shop in 2013.
