Canada Signals Plan to Ban Crypto ATMs by 2026, Citing Fraud and Money Laundering Risks

Canada is moving toward a ban on cryptocurrency ATMs, arguing the machines have become a major conduit for scams and illicit cash flows. In its spring economic update released April 28, the governing Liberal Party said crypto ATMs are a "primary method for scammers to defraud victims and for criminals to place their cash proceeds of crime." The proposal would represent the country's first direct move to regulate the sector, which currently falls under broader money services business rules. Canada hosts nearly 4,000 crypto ATMs—the highest per capita globally—against more than 39,000 machines worldwide, according to a report. A 2023 CBC News investigation described the kiosks as a leading vehicle for fraud. FINTRAC, Canada's financial intelligence unit, echoed those concerns in a February review of suspicious transaction reports. The agency flagged that some transactions may require little more than a phone number for deposits under $1,000, with limited human oversight to detect scam activity. Finance Minister François-Philippe Champagne has said the government is "looking at all options to prevent financial crimes," without directly addressing FINTRAC's findings. The economic update offered few operational details and did not set out how a 2026 timeline would be enforced through new licensing rules. It said Canadians would still be able to purchase cryptocurrency via licensed money services businesses, including foreign exchange dealers and money-transfer services. Canada's stance aligns with a growing international crackdown on crypto ATMs. Australian authorities have called the machines among the highest-risk channels for money laundering and have pursued operators that fail to meet regulatory requirements. The U.K. has effectively prohibited crypto ATMs since establishing a licensing framework in 2021, with no licenses reportedly issued. New Zealand banned crypto ATMs in July 2025, saying the goal was to make it harder for criminals to convert illicit cash into high-risk assets and move funds offshore. Canadian officials have yet to release specifics on when the ban would take effect or how it would be implemented.