Canada is preparing to take a major step against all crypto related fraud. The federal government has announced its plans to ban crypto ATMs across the country. The move is aimed at stopping scammers who are making use of these machines to steal money from victims.
The proposal was shared during the government’s spring economic update, where officials described crypto ATMs as a major tool fraudsters use for money laundering.
Source: NCFA Canada
These machines allow users to deposit their cash and immediately convert it into cryptocurrency, which can then be sent anywhere in the world without any trace. As at the time of writing, Canada has nearly 4,000 crypto ATMs, the highest number per capita in the world. Despite this, there have been no regulations designed for the industry, leaving gaps that fraudsters have exploited.
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A previous investigation by CBC found that scammers frequently direct victims to these machines, instructing them to deposit cash and send it to digital wallets controlled by criminals. Once the money is sent, it is almost impossible to recover.
Authorities, including Canada’s financial intelligence agency, have already identified crypto ATMs as a primary channel for scam-related transactions. However, until now, there has been little direct action to control their use.
Canada and the Global Pressure Concerning Crypto Fraud Concerns
Canada is not the only country tightening control over crypto ATMs. Other countries have also taken similar steps to reduce crypto fraud risks.
The United Kingdom has effectively banned the machines by refusing to issue operating licences. New Zealand is considering a ban, while Australia has introduced limits on daily transactions. In the United States, several states have added rules such as transaction caps and refund requirements for scam victims.
Even with the proposed ban, the government says people will still be able to buy cryptocurrency through registered money service businesses. The goal is to reduce fraud while keeping access to digital assets available in safer environments.
Critics argue that banning the machines may not fully stop scams, as criminals could shift to other methods. Still, officials believe the move will significantly reduce one of the most common ways victims lose money.
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