Canada to Ban Nearly 4,000 Crypto ATMs Over Fraud Use

The federal government announced in the Spring Economic Update 2026 that it will ban nearly 4,000 cryptocurrency ATMs across Canada. The update described the kiosks as a ‘primary method’ used by scammers and criminal networks. Canada currently has the highest number of crypto ATMs per capita globally.

Officials cited investigations and a February 2023 review by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) that identified crypto ATMs as a recurring way to move funds linked to fraud schemes. Authorities said probes found the machines were frequently used to collect and transfer proceeds from scams.

Crypto ATMs allow fast transfers without a bank account. Transactions under $1,000 often require only a phone number, and many machines operate without direct human interaction, which reduces opportunities to detect suspicious activity, according to government material.

Operators are currently classified under existing money services business rules, the same category that covers foreign exchange dealers, traditional ATMs and money transfer providers. The update said Canadians can still buy digital assets through other regulated channels, including brick-and-mortar money services businesses that are subject to oversight.

The economic update provided few operational details on how the ban would be carried out or a timeline for removing machines from service. Officials did not outline specific enforcement steps or explain how owners and operators would be required to comply.

Separately, Parliament is considering Bill C-25, the Strong and Free Elections Act, which has passed second reading in the House of Commons. The bill would prohibit candidates, political parties and third-party advertisers from accepting cryptocurrency donations and would require prohibited contributions to be returned or redirected within 30 days. The proposal revives language from an earlier bill that fell when Parliament broke in early 2025; lawmakers raised questions about how the new rules would be implemented.

Policy in other jurisdictions differs. U.S. election regulators allow crypto donations under existing rules. In the United Kingdom, a licensing framework has limited approvals for crypto ATM operators. Canadian officials have not introduced industry-specific rules for crypto ATMs to date.

Investigations into scams showed a common pattern: victims are instructed to convert money into cryptocurrency at kiosks and then send funds to fraudsters, often under time pressure. Authorities and financial intelligence officials identified the machines as a vulnerability in the financial system and referenced those findings in the economic update as part of the rationale for the proposed ban.