Canada Proposes Nationwide Ban on Crypto ATMs in Spring Economic Update 2026
The Canadian federal government has proposed a comprehensive ban on cryptocurrency ATMs, citing their role as a primary method for scammers to defraud victims and criminals to launder cash proceeds. This measure appears in the Spring Economic Update 2026, unveiled by Prime Minister Mark Carney on April 28, 2026. With nearly 4000 machines operating across the country—the highest per capita concentration worldwide—officials link them to significant fraud losses, including $704 million reported in 2025 and $14.2 million via ATMs in 2024 alone. The proposal allows crypto purchases through other regulated channels but eliminates unattended cash-to-crypto access points. Industry operators like Localcoin criticize the lack of consultation, arguing it overlooks legitimate users and shifts risks elsewhere.
Federal Government Targets Crypto ATMs in Economic Update
The Spring Economic Update 2026, released April 28, 2026, proposes legislation to ban crypto ATMs entirely. Prime Minister Mark Carney’s government describes these machines as a primary method for scammers to defraud victims and for criminals to place cash proceeds of crime. Canada hosts nearly 4000 such machines, the highest per capita worldwide, following the installation of the first Bitcoin ATM in a Vancouver coffee shop in April 2013.
Reported fraud losses exceeded $704 million in 2025, contributing to over $2.4 billion since 2022, with officials estimating only 5 to 10 percent of incidents reported. Crypto ATM-specific scams accounted for $14.2 million in 2024 and over $4.2 million in the first three months of 2025, per the Canadian Anti-Fraud Centre.
Fraud Risks and Regulatory Background
Crypto ATMs enable cash-to-crypto conversions without bank accounts or full identity verification for transactions under $1000, often requiring only a phone number. A 2023 FINTRAC analysis identified Bitcoin ATMs as likely remaining the primary method for fraudsters to collect and launder funds. Former employees of Canadian crypto ATM companies told CBC News that fraud-related transactions are a known issue, with some alleging operators would not be profitable without them.
The machines’ physical presence in convenience stores, gas stations, and malls makes them visible targets for regulators. Finance Minister François-Philippe Champagne and FINTRAC declined CBC interview requests last fall on enforcement actions.
Industry Response and Carve-Outs
Localcoin, Canada’s largest crypto ATM operator, responded on April 30, 2026, calling the proposal a sweeping measure developed without industry consultation. CEO Tristan Fong stated it risks undermining legitimate operators, small retail partners, and Canadian employees, while fraud challenges exist across financial sectors without similar bans. Localcoin advocates targeted enforcement, stronger protections, and collaboration over a blanket ban.
The proposal includes a carve-out allowing digital asset purchases through regulated channels like brick-and-mortar money services businesses. This preserves access for underbanked or cash-dependent users but removes convenient retail machines.
Global Context and Precedents
Canada’s approach follows global trends. The UK restricted crypto ATMs in 2021 via Financial Conduct Authority registration, with no operators approved by 2026. Australia imposed cash limits per transaction in mid-2025 after a fraud review, while New Zealand announced an outright ban in July of the previous year. In the US, Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act in February, capping daily spends at $2000 and requiring verbal confirmation over $500.
The proposal aligns with Canada’s creation of a Financial Crimes Agency, funded with $352.7 million over five years to track illicit money flows.
| Metric | Value | Period |
|---|---|---|
| Crypto ATMs in Canada | Nearly 4000 | Current (2026) |
| Reported fraud losses | $704 million | 2025 |
| Total reported losses since | $2.4 billion | 2022 |
| ATM scam losses | $14.2 million | 2024 |
| ATM scam losses (Q1) | $4.2 million | 2025 |
| Financial Crimes Agency funding | $352.7 million | Over 5 years |
