Canada Moves to Ban Crypto ATMs Linked to Fraud Activities

The Canadian government has proposed banning Bitcoin and other crypto ATMs nationwide. This was revealed in the Federal Spring Economic Update 2026. 

The government described the crypto machines as a tool used by scammers to defraud victims and launder illicit cash. 

The government’s Spring Economic Update 2026 says crypto ATMs are “the primary method for scammers to defraud victims and for criminals to place their cash proceeds of crime,” and also states that the government intends to “ban crypto ATMs.” 

The proposal also said that Canadians will be able to buy virtual currencies from brick-and-mortar money services businesses. The government also proposes to discontinue standalone kiosks that are proliferated in malls, gas stations, and corner stores. 

This move also signals a broader push by Ottawa to curb retail-facing crypto risks as fraud cases surge, bringing more of the digital asset industry under tighter federal oversight. According to authorities, this measure is aimed at cutting off the most common methods used in scams targeting a lot of Canadians. 

The policy is important for the country, as Canada was the pioneer in this field. The first publicly available Bitcoin ATM was installed in a Vancouver coffee shop in 2013, making Canada the place of origin of the Bitcoin ATM. 

Since the first installation, the country has expanded into one of the most crypto-ATM-dense markets globally. Regulators claim that this expansion has turned the country into a primary target for scammers. 

Coin ATM Radar data estimates that Canada has over 10.1% of global crypto ATMs, second only to the United States. 

CBC investigation and the internal Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) analysis shared on April 28 their findings that crypto ATMs have become the principal method used by domestic and foreign criminal fraudsters to extract money from Canadian scam victims and transfer those funds into the crypto industry. 

Law enforcement agencies told CBC they saw an increasing number of cases where victims are instructed to feed cash into the machines under the pretext of paying tax debts, securing romantic relationships, or recovering hacked accounts. 

The proposed ban is a part of a broader crypto regulatory push 

The proposed ATM ban is part of a broader plan to tighten control around high-risk sectors of Canada’s crypto industry. It also drives core infrastructure more firmly into the regulatory perimeter.   

The Spring Economic Update formed a new Financial Crimes Agency and gave FINTRAC more tools to refuse or revoke permissions and registrations for non-compliant money services businesses, including crypto companies. 

Ottawa has also created a federal stablecoin framework in Bill C-15, making the Bank of Canada the supervisor and requiring fiat-referenced issuers to register, fully back reserves, and redeem at par, with most rules taking effect once regulations are finalized ahead of the 2027 start date. 

Lawmakers are also pushing Bill C-25 to bar cryptocurrency donations in federal politics. This is with concern about traceability and foreign interference, as the country adopts a regulation-first approach in order to target retail-facing abuse risks and put core digital assets under federal oversight. 

Also Read: Automated Crypto Trading Tools on Gemini: Features, Bots and Strategies