The federal government is planning to ban cryptocurrency ATMs across Canada as part of a broader effort to combat financial crime outlined in its spring economic statement.
Officials say the machines have become a growing tool for scammers targeting victims, as well as for criminals looking to convert illicit cash into digital assets.
Finance officials note there are currently just under 4,000 cryptocurrency ATMs in Canada — the highest number per capita in the world.
While the proposed ban would remove these machines, Canadians would still be able to purchase cryptocurrencies through regulated, in-person businesses.
The plan is part of a wider strategy to tighten oversight on money service businesses, including currency exchanges and digital payment providers.
Proposed measures include stricter registration requirements, expanded ministerial powers, and enhanced criminal background checks for operators, amid concerns these services are being used for money laundering, terrorism financing, sanctions evasion, and fraud.
The government is also committing significant funding to strengthen enforcement, including $352.7 million over five years to establish a new federal Financial Crimes Agency headquartered in Ottawa.
Additional funding is earmarked for the Public Prosecution Service of Canada and financial intelligence operations, as officials work to improve the detection and prosecution of complex financial crimes tied to organized crime, extortion, and drug trafficking.
