According to CBC News, the Canadian federal government has announced plans to fully ban cryptocurrency ATMs to protect the public from scammers. This move was formally introduced in the government’s spring economic update, which characterizes cryptocurrency ATMs as “a primary tool used by fraudsters to deceive victims and by criminals to launder money.” Cryptocurrency ATMs allow users to deposit cash and exchange it for cryptocurrencies such as Bitcoin, which are then transferred to virtual wallets anywhere in the world. CBC News’s earlier investigative report, “Feeding the Fraud,” revealed that these machines have become a primary channel for scammers to obtain victims’ funds in Canada. Canada’s financial intelligence unit, FINTRAC, reached the same conclusion in its February 2023 analysis report. Canada currently has the highest number of cryptocurrency ATMs per capita in the world, with nearly 4,000 machines nationwide, yet it has lacked specific regulatory frameworks for this industry. The government stated that, following the ban, the public will still be able to purchase virtual currencies through licensed money services businesses.
Canada Plans to Ban Crypto ATMs to Combat Fraud
TechFlowShare
Summary
Canada has announced a ban on cryptocurrency ATMs to combat fraud and money laundering, as detailed in the Spring Economic Update. These machines, which allow users to convert cash into Bitcoin and other cryptocurrencies, are viewed as a primary tool for scammers. With nearly 4,000 units nationwide, Canada has the highest per capita density of such ATMs but lacks clear regulatory oversight. The government states that cryptocurrency purchases will still be possible through licensed money service providers. This move could affect liquidity and crypto markets by restricting a major on-ramp for retail investors.
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