Crypto ATMs are at the center of a new policy shift in Canada, as the federal government moves to restrict their use following rising fraud concerns. According to details outlined in the Spring Economic Update 2026, officials plan to ban cryptocurrency ATMs, citing them as a primary channel for scammers and criminal networks. Canada currently hosts nearly 4,000 crypto ATMs, the highest number per capita globally. At the same time, authorities have not introduced industry-specific rules for these machines. Crypto ATMs flagged in fraud investigations Investigations conducted by CBC News identified crypto ATMs as a central tool used in scams across the country. The reporting formed part of a three-part series that examined how fraudsters use these machines to collect funds from victims. The results showed that crypto ATMs allow fast transfers without requiring a bank account. In many cases, transactions under $1,000 only require a phone number. Moreover, the process does not involve direct human interaction, which limits opportunities to detect suspicious activity. Canada’s financial intelligence agency, FINTRAC, reached a similar conclusion in a February 2023 review of suspicious transaction reports. The agency identified crypto ATMs as a recurring method for moving funds linked to fraud schemes. In response, officials have pointed to these machines as a key vulnerability within the financial system. Government outlines ban under economic update The federal government formally introduced the proposed ban through its 2026 economic update. Officials described crypto ATMs as a “primary method” used by scammers to defraud victims and process illicit proceeds. However, the release included limited operational details on how the ban would be enacted. Moreover, it confirmed that Canadians would still be able to purchase digital assets through other regulated channels. These include brick-and-mortar money services businesses, which are already subject to existing oversight frameworks. Currently, crypto ATMs operate under the same classification as money services businesses. This category includes foreign exchange dealers, traditional ATMs, and money transfer providers such as Western Union. Canada expands crypto restrictions beyond ATMs At the same time, lawmakers are advancing separate legislation targeting crypto use in federal elections. Bill C-25, known as the Strong and Free Elections Act, has passed its second reading in the House of Commons. The proposal, as highlighted by Cryptopolitan, would prohibit political parties and related groups from accepting crypto donations. Lawmakers have linked the restriction to challenges in verifying donor identities and tracking the origin of funds. The bill applies to candidates, parties, and third-party advertisers, requiring them to return or redirect prohibited contributions within 30 days. In addition, the bill also recycles language from an earlier draft that collapsed when Parliament broke in early 2025. Its return shows the government has not dropped the issue. Rather, it seems officials are more committed to codifying constraints. However, support for the measure has come from multiple political groups, including Conservatives. While some lawmakers raised implementation questions, they did not oppose the bill’s core objective. Instead, the discussion has shifted toward how the rules would function in practice. Canada’s approach differs from other jurisdictions. In the United States, the Federal Election Commission allows crypto donations under existing rules. Meanwhile, the United Kingdom has effectively restricted crypto ATMs through a licensing framework that has not approved operators. If you're reading this, you’re already ahead. Stay there with our newsletter .
