Canada Proposes Crypto ATM Ban

Canada has put forward a proposal to ban Bitcoin and other crypto ATMs, arguing that these machines are increasingly being used by fraudsters and money launderers rather than serving everyday users.

In its Spring Economic Update 2026, released on April 28, the government described crypto ATMs as a “primary method for scammers to defraud victims and for criminals to place their cash proceeds of crime,” adding that it “proposes to ban crypto ATMs.”

Under the proposal, Canadians would still be able to purchase digital assets through physical money services businesses. However, standalone kiosks commonly found in locations such as malls, gas stations, and convenience stores would be gradually removed.

Rising fraud concerns and market exposure

The proposed ban is part of a broader effort by federal authorities to address rising fraud cases and strengthen oversight of the digital asset sector. Officials say the move targets one of the most frequently used channels in scams affecting Canadian users.

The policy carries particular significance given Canada’s early involvement in the space. The first publicly accessible Bitcoin ATM was installed in a Vancouver coffee shop in 2013, marking the country as a pioneer in the segment.

Since then, Canada has become one of the most densely populated markets for crypto ATMs globally. Data from Coin ATM Radar suggests the country accounts for around 10.1% of global installations, second only to the United States.

Investigations by CBC and analysis from the Financial Transactions and Reports Analysis Centre of Canada indicate that crypto ATMs have become a major tool for both domestic and international fraud schemes. In many cases, victims are instructed to deposit cash into these machines under false pretenses, such as settling tax obligations, maintaining relationships, or recovering compromised accounts.

Broader regulatory push across crypto sector

The proposed ban is part of a wider regulatory strategy aimed at tightening controls on higher-risk areas of Canada’s crypto market while bringing core infrastructure under stronger federal supervision. The same economic update outlines plans to enhance a new Financial Crimes Agency and expand FINTRAC’s authority to deny or revoke registrations for non-compliant money services businesses, including those operating in crypto.

At the same time, the government has introduced a stablecoin framework through Bill C-15, placing oversight under the Bank of Canada. The framework would require issuers of fiat-backed stablecoins to register, maintain fully backed reserves, and ensure redemption at par, with implementation expected after final regulations ahead of a projected 2027 rollout.

Lawmakers are also progressing Bill C-25, which seeks to prohibit cryptocurrency donations in federal politics due to concerns around transparency and potential foreign influence, reinforcing Canada’s regulation-first approach to the sector.

Sources:

https://cointelegraph.com/news/canada-proposes-crypto-atm-ban-over-scams-and-money-laundering

https://dune.com/