Canada Moves to Ban Crypto ATMs Amid Rising Scams

Highlights:

• Authorities in Canada have disclosed plans to ban crypto ATM operators in the country.
• The move is part of an ongoing effort to tackle crypto-related fraudulent activities.
• Despite the ban on crypto ATMs, citizens can still own digital assets like Bitcoin. 

Canada’s federal government, led by the Liberal Party of Canada, has disclosed plans to ban crypto ATMs. The government revealed the plan in its latest economic update, where it described the machines as a primary method used by scammers and criminals to move illegal money. The move comes after a long investigation called “Feeding Fraud.”CBC News, a local news publication firm in Canada, reported that other authorities in the country, including law enforcement agencies and crypto experts, have also identified ATM machines as one of the easiest ways scammers use to steal money from unsuspecting victims. 

Advertisement

🚨CANADA MOVES TO BAN CRYPTO ATMS IN MAJOR CRACKDOWN

Canadian government plans to prohibit crypto ATMs, labelling them a key tool for scams and illicit money flows.

With the world’s highest crypto ATM density per capita, the crackdown impacts nearly 4,000 machines nationwide. pic.twitter.com/Q22kWWSRSB

— Coin Bureau (@coinbureau) April 29, 2026

According to the publication, scammers operate by tricking victims into making urgent fund transfers, often via phone call, text, or online messages. Instead of using banks, the scam targets are directed to send money via a specific crypto ATM. The victim eventually deposits cash, converts it into cryptocurrencies like Bitcoin (BTC), and sends it to a digital wallet controlled by the scammer. Once sent, the funds become very difficult to trace or recover. 

Canada’s financial intelligence agency, FINTRAC, noted that these machines have become a major channel for many suspicious transactions. These findings are evidenced in the agency’s previous reports on fraud cases.

Before now, the nation’s Finance Minister, François-Philippe Champagne, had hinted that the government was reviewing different options for combating financial crimes. However, he failed to report clear details then. 

Why Scammers Often Prefer Crypto ATMs

Crypto ATMs are often very simple and quick to use. This is because many machines do not require a bank account. For example, small transactions may only require a phone number. In addition, there is no staff nearby to question suspicious transactions, unlike in conventional banks, where a teller might step in if something goes wrong. 

Canada has a very large number of these crypto ATMs. Recent statistics showed that the country has roughly 4,000 machines, the highest per person globally. Worldwide, there are over 39,000 crypto ATMs. However, rules on the machines’ use have remained porous. For now, many countries treat crypto ATMs as regular money service businesses, similar to Western Union.

Canadian Government Plans to Ban Crypto ATMs to Combat Scams

According to CBC, Canadian federal government announced plans in its Spring Economic Update 2026 to ban cryptocurrency ATMs to protect citizens from fraud. The government identified crypto ATMs as a "primary method"… pic.twitter.com/nlzd0MQI2H

— Wu Blockchain (@WuBlockchain) April 29, 2026

Canada’s Government Highlights Future Steps as it Moves to Ban Crypto ATMs

Even with the proposed ban, the government noted that people will still be able to buy cryptocurrencies via physical money service businesses. The government emphasized that the goal of the ban is to reduce illegal activities while maintaining legal access. Meanwhile, Canada is not the only country that has raised alarms or taken actions against crypto ATMs. The United Kingdom has already placed a permanent ban on crypto ATM operations by not approving licenses for the services. 

Like Canada, New Zealand is also planning a ban on crypto ATMs. Australian authorities have already introduced daily transaction limits following a major investigation. In the United States, many regions have raised alarms and also introduced rules targeting the use of crypto ATMs. In March this year, Connecticut regulators ordered Bitcoin Depot, the world’s largest Bitcoin ATM operator, to stop operating its kiosks. 

The restriction came after regulators found excessive fees and weak consumer protection in the ATM operator’s services. Moreover, a report from the United States Department of the Treasury had also warned that crypto ATMs are becoming a growing channel for scam-related payments. This report corroborates Canada’s claims, highlighting a global concern that needs urgent attention.

Advertisement