Canadian federal government plans to ban cryptocurrency ATMs to combat fraud

Odaily reported that the Canadian federal government announced in its spring economic update released on Tuesday a plan to ban cryptocurrency ATMs to protect citizens from fraud. The government defined cryptocurrency ATMs as a primary tool used by scammers to defraud victims and by criminals to transfer illicit funds.

Previous analysis by FINTRAC showed that cryptocurrency ATMs have become a major channel for scammers to obtain funds from victims in Canada. Since these machines do not require a bank account and lack manual review, funds can be transferred quickly and are difficult to trace. Canada currently has nearly 4,000 cryptocurrency ATMs, ranking first globally in per capita ownership. The Canadian government stated that the measure aims to better protect citizens from illegal activities when purchasing virtual currencies through physical money service businesses. Previously, countries such as the UK, New Zealand, and Australia have implemented restrictions or bans on cryptocurrency ATMs.