The Canadian federal government has announced a proposal to ban cryptocurrency ATMs nationwide, describing them as a "primary method for scammers to defraud victims and for criminals to place their cash proceeds of crime". The measure was included in the government's Spring Economic Update released on Tuesday, April 28, 2026.
According to the government, the ban aims to protect Canadians by shutting down this channel used extensively in fraud schemes and money laundering operations. Despite the proposed prohibition, Canadians will still be able to purchase crypto assets through legitimate brick-and-mortar money services businesses.
The government did not provide further details on the implementation timeline or specific regulatory framework in the Tuesday document. However, the move follows mounting scrutiny from law enforcement and financial intelligence agencies. A 2023 internal analysis by Canada's financial intelligence agency, FINTRAC, found that bitcoin ATMs are likely to remain "the primary method" fraudsters use to collect and launder funds from victims.
Canada is home to roughly 4,000 crypto ATMs—one of the highest concentrations globally—yet the sector currently operates without industry-specific regulations. The country also hosted the first bitcoin ATM in the world, installed in a downtown Vancouver coffee shop in 2013.
The proposed ban aligns with a broader international crackdown. In March 2026, Indiana enacted a full statewide ban on crypto ATMs. Last week, Tennessee signed a bill into law banning crypto ATMs, extending liability beyond operators to businesses that host the machines. Australia has proposed expanding its anti-money laundering agency's powers to target illicit use of crypto ATMs, and New Zealand has announced plans to ban them outright.
Data from the FBI underscores the severity of the problem: in 2025, U.S. authorities logged 13,460 complaints involving crypto ATMs, with $389 million in losses, representing a 58% increase from the previous year.
