Canada Moves to Prohibit Crypto ATMs in Bid to Curb Fraud

Canada's federal government plans to ban cryptocurrency ATMs nationwide as part of a broader effort to protect consumers from scams, CBC News reported. The proposal was set out in the government's spring economic update, which describes crypto ATMs as "a primary tool used by fraudsters to deceive victims and by criminals to launder money." Crypto ATMs enable users to insert cash, convert it into digital assets such as Bitcoin, and send the funds to virtual wallets worldwide. A CBC News investigation, "Feeding the Fraud," found the machines have increasingly become a key route for scammers to extract money from victims in Canada. FINTRAC, the country's financial intelligence unit, echoed that assessment in an analysis published in February 2023. Canada has nearly 4,000 crypto ATMs and the highest per-capita concentration globally, despite the absence of industry-specific regulatory rules. The government said Canadians would still be able to buy virtual currencies through licensed money services businesses after the ban takes effect.