The Canadian authorities has proposed banning Bitcoin and different crypto ATMs, arguing the machines have grow to be a major on-ramp for fraudsters and cash launderers reasonably than a handy entry level for on a regular basis customers.
The federal government’s Spring Financial Replace 2026, revealed on April 28, says crypto ATMs are a “major technique for scammers to defraud victims and for criminals to put their money proceeds of crime,” and explicitly states that the federal government “proposes to ban crypto ATMs.”
The proposal states that Canadians will nonetheless be capable of purchase digital currencies from brick-and-mortar cash providers companies, however the standalone kiosks which have proliferated in malls, fuel stations and nook shops can be phased out.
The transfer provides to a broader push by Ottawa to clamp down on what it frames as retail-facing crypto dangers as fraud circumstances surge, whereas bringing extra of the digital asset sector below tighter federal oversight. Authorities say the transfer is aimed toward slicing off one of the crucial frequent channels utilized in scams which have more and more focused Canadians.
The coverage is of specific notice given Canada’s early function within the sector. The world’s first publicly obtainable Bitcoin ATM went dwell in a Vancouver espresso store in 2013, making Canada the birthplace of the Bitcoin ATM.
Spring Financial Replace 2026. Supply: Authorities of Canada
Since then, the nation has grown into one of the crucial crypto-ATM-dense markets globally, a standing regulators say has given it disproportionate publicity to fraud. Coin ATM Radar knowledge estimates that Canada accounts for 10.1% of worldwide crypto ATMs, second solely to the USA.
A months-long CBC investigation and inner Monetary Transactions and Reviews Evaluation Centre of Canada (FINTRAC) evaluation posted April 28 discovered that crypto ATMs have grow to be the principal technique utilized by home and overseas felony fraudsters to extract cash from Canadian rip-off victims and push these funds into the crypto ecosystem.
Regulation enforcement companies instructed CBC they’ve seen a transparent uptick in circumstances the place victims are instructed to feed money into these machines below the guise of paying tax money owed, securing romance relationships or recovering hacked accounts.
Associated: Canada revokes 47 crypto cash licenses, vows to proceed
Ban varieties a part of broader crypto regulatory push
The proposed ATM ban sits inside a broader effort to tighten controls round high-risk corners of Canada’s crypto market whereas drawing core infrastructure extra firmly into the regulatory perimeter.
Crypto ATM distribution by continents and international locations. Supply: Coin ATM Radar
The identical Spring Financial Replace bolsters a brand new Monetary Crimes Company and provides FINTRAC extra instruments to refuse or revoke registrations for non-compliant cash providers companies, together with crypto firms.
In parallel, Ottawa has enacted a federal stablecoin framework in Invoice C-15 that makes the Financial institution of Canada the supervisor and requires fiat-referenced issuers to register, absolutely again reserves and redeem at par, with most guidelines kicking in after rules are finalized forward of an anticipated 2027 begin date.
Lawmakers are additionally advancing Invoice C-25 to bar cryptocurrency donations in federal politics over issues about traceability and overseas interference, because the nation adopts a regulation-first method to focus on retail-facing abuse dangers and pull core digital asset rails below federal oversight.
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