CRYPTO CRIME | Canada Proposes Banning Crypto ATMs Due to Fraud and Money Laundering

Canada has proposed banning cryptocurrency automated teller machines (ATMs), saying the devices have become a key channel for fraud and money laundering rather than a convenient tool for retail users, according to the government’s latest economic update.

The proposal, outlined in the Spring Economic Update 2026 released on April 28 2026, describes crypto ATMs as a ‘primary method‘ used by scammers to defraud victims and by criminals to move illicit proceeds into the digital asset ecosystem.

Officials said the move is part of a broader push to curb financial crime and tighten oversight of high-risk areas within the crypto sector as fraud cases involving such machines continue to rise.

Canada currently hosts nearly 4,000 crypto ATMs, one of the highest concentrations globally, a factor authorities say has increased the country’s exposure to scams targeting individuals.

Under the proposal, Canadians would still be able to purchase cryptocurrencies through regulated, in-person money service businesses, even as standalone kiosks in locations such as convenience stores and gas stations are phased out.

The government has not yet provided detailed timelines for the ban but signaled it forms part of a wider crackdown on illicit financial activity linked to digital assets.

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