Canada’s federal government is planning to ban crypto ATMs to address rising fraud, CBC News reported Tuesday. Officials say these machines are widely used by scammers to collect money from victims and move illicit funds.
A crypto ATM is a machine connected to the blockchain network that allows users to convert cash into cryptocurrency, or sometimes crypto into cash. Transactions are completed by scanning a wallet QR code, and the funds are transferred digitally rather than dispensed physically like regular ATMs.
While features such as rapid processing and minimal verification make crypto ATMs convenient, they also leave the systems vulnerable to misuse.
Crypto-ATM-linked scams are a growing subset of fraud losses in Canada. Media reports and law enforcement accounts describe cases where elderly Canadians are coached into depositing cash from retirement savings into crypto ATMs at gas stations and convenience stores.
Canada currently hosts nearly 4,000 of these machines, the second-highest concentration per capita on Earth, according to Coin ATM Radar. Despite that density, the country has operated without any industry-specific regulations. Crypto ATMs have simply been lumped in with other “money services businesses,” a regulatory category that also includes Western Union and ordinary currency exchange counters.
The government has not shared many details about the ban but says people will still be able to buy crypto through regulated in-person services.
Other countries have already introduced bans or restrictions, such as licensing systems or transaction limits, to reduce fraud linked to these machines.
The UK effectively restricted crypto ATMs in 2021 by requiring all operators to register with the Financial Conduct Authority (FCA). As of 2026, no crypto ATM operator has obtained that registration, rendering each machine in practice illegal and subject to enforcement action.
New Zealand has introduced legislation to ban crypto ATMs entirely and limit cash‑transfer sizes as part of anti‑money‑laundering reforms.
Australia took a softer approach, with its financial intelligence agency AUSTRAC imposing per‑transaction cash limits at crypto ATMs in mid‑2025, following a joint review focused on fraud and consumer protection.
In the US, roughly half of the states have either proposed or enacted rules specifically targeting crypto ATMs, including daily spending caps, fee‑disclosure rules, and requirements that operators reimburse scam victims in certain cases.
The FBI reported that Americans lost more than $333 million to crypto‑ATM scams in 2025 alone.
Maine recently secured a $1.9 million settlement with Bitcoin Depot, one of the largest crypto‑ATM operators, over allegations that its kiosks helped facilitate fraud.
For operators in Canada, an outright ban would pose an existential threat. Bitcoin Well, a Canadian crypto ATM company, and Localcoin, another major operator, collectively run hundreds of machines.
Without these kiosks, some Canadians who rely on cash‑to‑crypto services say they will have little to no way to buy Bitcoin, since many of their banks already restrict or block transfers to crypto exchanges.
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