Key Takeaways:
- The Liberal Party’s April 28 update plans a ban on crypto ATMs to stop scammers and illicit cash moves.
- Canada leads the world per capita with 4,000 machines, while over 39,000 remain active globally.
- The government and FINTRAC have yet to set a 2026 timeline for enforcing these new licensing rules.
Linking ATMs to Financial Fraud
The Canadian government says it plans to ban cryptocurrency ATMs, calling them a key tool for scammers and criminals to move illicit cash. In its spring economic update unveiled April 28, the governing Liberal Party described the machines as a “primary method for scammers to defraud victims and for criminals to place their cash proceeds of crime.”
The proposal would mark Canada’s first direct regulation of the industry, which currently operates under general money services business rules. According to a report, Canada has nearly 4,000 crypto ATMs — the highest per capita globally — compared with more than 39,000 worldwide.
A 2023 CBC News investigation found the machines have become a leading vehicle for fraud. Canada’s financial intelligence agency, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), reached the same conclusion in a February analysis of suspicious transaction reports. The agency noted that transactions often require little more than a phone number for deposits under $1,000, with no human oversight to spot scams.
Finance Minister François-Philippe Champagne has previously said the government is “looking at all options to prevent financial crimes,” though he did not directly address FINTRAC’s findings. While the update offered few details on the ban, it said Canadians would still be able to buy cryptocurrency through licensed money services businesses, such as foreign exchange dealers and money-transfer services.
By moving against crypto ATMs, Canada joins a growing number of countries that have taken a hard-line stance but stopped short of an outright ban. Australian authorities, which label crypto ATMs as one of the highest-risk channels for money laundering, have cracked down on operators failing to adhere to regulations. The U.K. effectively banned crypto ATMs after creating a licensing infrastructure in 2021, which has reportedly not issued any licences to operators.
New Zealand, on the other hand, banned crypto ATMs in July 2025, a move authorities said was aimed at making it harder for criminals to convert illicit cash into high-risk assets and move funds offshore. Meanwhile, the Canadian government has not yet released details on how or when the ban will take effect.
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