Canada Proposes Crypto ATM Ban to Tackle Scams, Money Laundering

The Canadian government has proposed a ban on Bitcoin and other crypto ATMs, citing their increasing use by fraudsters and money launderers to defraud victims and launder illicit cash. The proposal, part of the Spring Economic Update 2026, aims to phase out standalone kiosks found in public spaces, while allowing Canadians to still purchase virtual currencies through brick-and-mortar money services businesses. This move is part of a broader regulatory push by Ottawa to address retail-facing crypto risks and enhance federal oversight of the digital asset sector, especially as fraud cases surge. Canada, which hosted the world's first Bitcoin ATM in 2013, has become one of the most crypto-ATM-dense markets globally, with regulators concerned about its disproportionate exposure to fraud. Investigations have revealed that crypto ATMs are a principal method for criminals to extract funds from scam victims and integrate them into the crypto ecosystem. Law enforcement has noted an increase in cases where victims are coerced into using these machines to pay fake debts or resolve issues. The proposed ban aligns with other regulatory efforts, including strengthening the Financial Crimes Agency, empowering FINTRAC, enacting a stablecoin framework, and barring crypto donations in federal politics, all aimed at mitigating retail-facing abuse risks and bringing digital asset infrastructure under federal control.

(Source：Cointelegraph)