Canada Moves to Ban Crypto ATMs Amid Rising Fraud and Money Laundering Concerns

The Canadian federal government has proposed a ban on cryptocurrency ATMs, highlighting their use as a major tool for scams and money laundering.

In its spring economic update, the government described crypto ATMs as a "primary method for scammers to defraud victims and for criminals to launder illicit funds."

While the proposed ban would eliminate the use of crypto ATMs, Canadians would still be able to buy crypto assets through legitimate brick-and-mortar money services businesses.

However, the government did not provide further details or a timeline for the proposal.

Currently, Canada hosts around 4,000 crypto ATMs, one of the highest concentrations globally, yet the industry operates without specific regulations. This lack of oversight has drawn increasing scrutiny both domestically and internationally.

Similar measures are being adopted in other regions. In March, Indiana became the first state to implement a full statewide ban on crypto ATMs, followed by Tennessee, where the governor recently signed a bill into law extending liability to businesses hosting crypto machines.

In addition, Australia is considering expanding the authority of its anti-money laundering agency to combat the illicit use of crypto ATMs. At the same time, New Zealand has also proposed an outright ban.

In July 2025, seven crypto ATMs were seized in southwest London as UK authorities crack down on illegal cryptocurrency exchanges.

The misuse of crypto ATMs for fraud and money laundering is a growing concern. According to an FBI report, U.S. authorities recorded 13,460 complaints related to crypto ATMs in 2025, with reported losses totaling $389 million—a 58% increase over the previous year.