The Department of Finance in Canada has suggested an outright prohibition on Bitcoin and cryptocurrency ATMs to safeguard seniors and the vulnerable from fraud. This proposal, outlined in a recent economic update, characterizes these machines as ‘a primary method’ utilized by scammers targeting Canadians for their funds.
Provinces such as Quebec have mandated that operators of crypto ATMs obtain licenses as money-services businesses (MSBs) for several years; however, this new national proposal aims to override existing regional regulations by mandating a countrywide closure of these self-service kiosks. These machines are frequently located at gas stations and convenience stores.
The Canadian government pointed out that the Financial Transactions and Reports Analysis Centre (FINTRAC) has been actively targeting MSBs in efforts to combat money laundering, terrorism financing, and evasion of sanctions. For instance, FINTRAC recently revoked licenses from 84 MSBs, including 70 involved in virtual currency transactions, such as ATM Token Financial, according to the regulator’s website.
Despite this proposal, Canadians would still be able to buy digital assets through physical MSB branches that require maintaining a storefront with staff present during business hours for regulatory compliance and operational management.
Canada hosts nearly 4,000 crypto ATMs, according to Coin ATM Radar, with over a quarter located in Montreal, the country’s second-largest city. By comparison, the U.S. has more than 30,000 such machines.
Scammers often pose as government officials or tech support to deceive victims into using crypto ATMs, coercing them to transfer cash to criminals’ wallets after conversion. In the U.S., FBI data from this month revealed that Americans aged over 60 lost $257 million last year due to crypto ATM scams—a 58% increase compared to the previous year. Indiana has banned these machines entirely, while Tennessee is set to follow suit with a law effective July 1.
Similar measures have been enacted in other countries, such as New Zealand’s ban on crypto ATMs introduced last year to curb money laundering.