The Canadian government has announced plans to ban crypto ATMs across the country. Authorities call the devices a “primary method” for fraudsters and money launderers.
The Canadian government has announced plans to ban crypto ATMs nationwide. Authorities call the devices a “primary method” for fraudsters and money launderers.
Approximately 4,000 such devices operate in the country—one of the highest per capita rates in the world.
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According to the spring economic update published this week, the ban aims to protect citizens from fraudulent schemes. Buying and selling cryptocurrency through licensed exchanges and other regulated services will remain legal.
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Why Is Canada Banning Bitcoin ATMs?
Canada’s financial intelligence agency, FINTRAC, concluded as early as 2023 that crypto ATMs remain a primary tool for collecting funds from fraud victims and subsequent money laundering. The devices allow quick conversion of cash to cryptocurrency with minimal identification, making them convenient for criminals.
According to FBI data, Americans lost $389M through crypto ATMs in 2025—a 58% increase from the previous year. The situation in Canada is similar. The absence of specific industry regulations allows the devices to operate with almost no oversight.
Related: Canada Proposes Complete Ban on Crypto Donations to Political Parties
Countries Around the World Moving Against Crypto ATMs
Canada joins a global wave of restrictions. In the United States, Indiana and Tennessee have already imposed complete bans on crypto ATMs. Australia is expanding its anti-money laundering regulator’s powers, and New Zealand is also planning a ban.
Authorities emphasize that the ban will not affect the legal cryptocurrency market but will significantly complicate scammers schemes. The legislative changes are expected to be introduced soon.
Read also: ZachXBT Tracks $3.7M BTC Theft From Bitcoin ATM Firm to KuCoin
