Canada Moves to Ban Crypto ATMs in Anti-Fraud Crackdown

Canada's federal government plans to impose a blanket ban on cryptocurrency ATMs as part of broader efforts to curb fraud, CBC News reported, citing details in the government's spring economic update. The document describes crypto ATMs as "a primary tool used by fraudsters to deceive victims and by criminals to launder money." Crypto ATMs let users insert cash to buy digital assets such as Bitcoin, which can then be sent to virtual wallets anywhere in the world. A previous CBC investigation titled "Feeding the Fraud" said the machines have become the main route through which scammers in Canada extract funds from victims. Canada's financial intelligence unit, FINTRAC, echoed that assessment in an analysis published in February 2023. Canada currently has the highest number of crypto ATMs per capita worldwide, with nearly 4,000 machines across the country, despite the absence of a dedicated regulatory framework for the sector. The government said that even after the ban takes effect, consumers will still be able to buy virtual currencies through designated money services businesses.