The Canadian government is moving closer to a complete ban on cryptocurrency ATMs, after deeming them a "primary method" used by criminals in fraud and money laundering. This information emerged in the spring economic update released earlier this week, marking Ottawa's strongest move yet on the crypto kiosk sector – a rapidly growing area that has largely lacked a dedicated regulatory framework.
In the document, the government stated it is proposing a ban on cryptocurrency ATMs because they are XEM as tools that help fraudsters steal money from victims and allow criminals to convert cash into digital assets in a way that is difficult to trace. However, Ottawa emphasized that citizens can still purchase digital assets through legitimate money service businesses operating directly. Authorities have not yet provided a specific roadmap or timeline for this proposal, but its inclusion in an official economic document indicates that the policy is being seriously pursued.
According to data cited by CBC News , Canada currently has approximately 4,000 cryptocurrency ATMs – one of the highest densities in the world. However, the industry operates in a "legal gray area" as it lacks specific regulations. This disparity between growth rate and regulatory framework is causing authorities to worry about the risk of financial crime, especially as crypto scams become increasingly sophisticated.
Canada's move comes as many countries are tightening controls on crypto ATMs. In Indiana , the government passed a statewide ban in March. Shortly after, the governor of Tennessee signed into law a ban on crypto ATMs and expanded legal liability to include not only operators but also businesses that place the machines. This is XEM a significant escalation, as previous regulations largely targeted only the operators.
In the Asia-Pacific region, Australia is proposing to increase the powers of its anti-money laundering agency to control the illicit use of crypto ATMs, while New Zealand has announced plans for a complete ban. The global trend shows countries shifting from surveillance to strict restrictions, reflecting a change in how they perceive the risks of this technology.
One reason for the increasing crackdown is the growing number of losses. A new report from the Federal Bureau of Investigation shows that authorities in the United States recorded 13,460 complaints related to crypto ATMs in 2025, with total losses reaching $389 million – a 58% increase from the previous year. This figure reflects the reality that cryptocurrency ATMs are becoming a familiar link in scam scenarios, particularly those involving impersonating authorities, technical support, or online romance scams.
