Canada’s federal government plans to ban all crypto ATMs as part of a new push against financial crime. The proposal appears in the 2026 Spring Economic Update, which describes these machines as a major tool for scams and money laundering.
Officials say criminals use crypto ATMs to convert cash from fraud and other crimes into digital assets that can be moved worldwide. They also say scammers often pressure victims to feed cash into nearby machines, sending funds straight to the scammer’s wallet.
Canada hosts nearly 4,000 crypto ATMs, the highest number per person in the world, according to government figures. Yet the industry has operated with few rules specific to these machines, even as use has grown into billions of dollars in annual transactions.
The country’s financial intelligence unit, FINTRAC, has flagged crypto ATMs as a primary method scammers use to collect money from victims.
A CBC investigation called “Feeding the Fraud” reached a similar conclusion, showing how fraud rings rely on ATMs to move funds quickly and anonymously.
What the Ban Would Change for Users
If the ban takes effect, operators will need to shut down almost all crypto ATMs across Canada. The government says people will still be able to buy cryptocurrencies through registered money service businesses and other regulated channels.
Officials argue that pushing users toward regulated on-ramps will help verify identities and make it harder for criminals to hide. However, the move would also remove a popular cash-to-crypto option for everyday users who prefer not to use online exchanges.
The Spring Economic Update also proposes tighter rules for money services businesses that handle currency exchange, remittances, and digital payments. Plans include stricter registration rules, more criminal record checks, and stronger ministerial powers to issue directives when risks appear.
Canadian officials note that peer nations such as Australia and the United Kingdom, as well as the state of Minnesota in the United States, have already taken strong stances on cryptocurrency ATMs, imposing stringent restrictions or outright bans. Canada indicates that it would prefer to completely shut down the machines rather than attempt to remedy the issue with laxer regulations, moving toward a complete prohibition.
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