Canada Considers Ban on Crypto ATMs as Part of Anti-Fraud Crackdown

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The Canadian government has proposed banning cryptocurrency ATMs as part of its plans to address fraud that it says “continues to grow in both scale and sophistication.” The government argues that these machines have become a major conduit for fraud and money laundering.

At present, Canada has the world’s most cryptocurrency ATMs per capita, with no industry-specific regulations.

However, in its Spring Economic Update 2026, the Canadian government wrote that it wanted to ban cryptocurrency ATMs to “protect Canadians by shutting down a primary method for scammers to defraud victims and for criminals to place their cash proceeds of crime.”

The plan would phase out standalone kiosks across malls, gas stations, and convenience stores, while preserving access to cryptocurrencies through regulated money services businesses.

According to the Canadian Anti-Fraud Centre, Canadians reported more than CAD 704 million (approx. USD 519 million) in fraud losses in 2025 alone. Authorities suspect the real scale could be far higher, with only 5-10% of incidents believed to be reported.

The government states the proposed ban is part of a campaign to “disrupt and dismantle” international and organized criminal networks operating in the country. 

As part of this campaign, the Canadian government is also establishing a new Financial Crimes Agency with police powers to investigate complex offenses and recover the proceeds of crime. FINTRAC is receiving expanded authority to revoke registrations of non-compliant money services businesses.

Concerns about non-compliance with registration and anti‑money laundering rules have resulted in cryptocurrency ATMs being banned in jurisdictions including the UK, Singapore, and New Zealand, as well as several states in the United States.