The Canadian federal government plans to ban cryptocurrency ATMs, citing their significant role in fraud and money laundering activities.
In the country, Spring Economic Dynamics, the government announced on Tuesday that it is proposing to ban cryptocurrency ATMs, calling them "a primary method for fraudsters to deceive victims and for criminals to deposit illicit cash."
Despite government proposals to ban cryptocurrency trading, Canadians can still purchase crypto assets from licensed fiat currency service providers. The government did not provide further details or a timeline for the proposal in the document released on Tuesday.
According to data cited by CBC News, Canada has approximately 4,000 cryptocurrency ATMs—among the highest concentrations in the world—yet the industry lacks specific regulatory oversight.
Increasingly strict scrutiny
In recent months, cryptocurrency self-service terminals have faced increasing scrutiny in multiple jurisdictions outside of Canada.
In March, Indiana enacted a statewide ban on cryptocurrency ATMs. Last week, the governor of Tennessee signed a bill prohibiting cryptocurrency ATMs and expanding liability to include businesses that host these machines.
Australia has proposed expanding the powers of its anti-money laundering agency to combat the illegal use of cryptocurrency ATMs; New Zealand has announced plans to ban them entirely.
Scammers have long exploited cryptocurrency ATMs for money laundering and fraud. FBI report data shows that in 2025, U.S. authorities recorded 13,460 complaints related to these machines, with losses totaling $389 million—a 58% increase from the previous year’s losses.