Canada Is Pulling the Plug on Crypto ATMs — Here’s Why

TLDR

• Canada’s Liberal government has proposed a nationwide ban on all crypto ATMs
• Officials call the machines a “primary method” for scammers and money launderers
• Canada has roughly 4,000 crypto ATMs — one of the highest concentrations globally
• Indiana and Tennessee have already enacted full statewide bans in the US
• The FBI logged 13,460 complaints tied to crypto ATMs in 2025, with $389 million in losses

Canada’s federal government has proposed banning all cryptocurrency ATMs across the country. The announcement came as part of the Liberal government’s Spring Economic Update released Tuesday.

The government said the machines have become a “primary method for scammers to defraud victims and for criminals to place their cash proceeds of crime.” Canada is home to roughly 4,000 crypto ATMs, making it one of the highest concentrations in the world.

Despite that, the sector currently operates without industry-specific regulations.

Crypto ATMs let users convert physical cash into cryptocurrencies like bitcoin. The funds can then be sent to a digital wallet anywhere in the world, bypassing traditional banking channels.

Canada’s financial intelligence agency FINTRAC flagged the issue in a 2023 internal report. It found that bitcoin ATMs were likely to remain the primary method used by fraudsters to collect and launder funds from victims.

The government said the ban aims to shut down that pipeline entirely. However, it did not provide a timeline or further details in Tuesday’s document.

Canadians will still be able to buy crypto from legitimate brick-and-mortar money services businesses. The proposal targets the machines specifically, not crypto ownership or trading.

A Global Trend

Canada is not acting alone. Several other jurisdictions have recently moved against crypto ATMs.

In March, Indiana became the first US state to enact a full statewide ban. Last week, Tennessee’s governor signed a similar bill into law, going further by extending liability to businesses that host the machines, not just operators.

Australia has proposed expanding its anti-money laundering agency’s powers to crack down on crypto ATM misuse. New Zealand has announced plans to ban the machines outright.

The FBI’s 2025 data shows why regulators are paying attention. US authorities recorded 13,460 complaints linked to crypto ATMs last year. Total losses reached $389 million, a 58% increase from the year before.

Canada’s Crypto ATM History

The irony of Canada’s proposal is not lost on observers. The country hosted the world’s very first bitcoin ATM, installed in a Vancouver coffee shop in 2013.

Canadian lawmakers are also debating a separate measure to ban crypto as a payment method for electoral donations. The concern there centers on the anonymity of fund transfers.

The Spring Economic Update did not elaborate on how or when the ATM ban would be implemented.

The FBI’s 2025 figures — 13,460 complaints and $389 million in losses, up 58% year-over-year — remain the most recent data point illustrating the scale of the problem regulators are trying to address.

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