Canada plans to ban cryptocurrency ATMs nationwide to combat fraud.

Deep Tide TechFlow message: On April 29, according to CBC News, the Canadian federal government announced plans to fully ban cryptocurrency ATMs in order to protect the public from scammers. The measure was formally proposed in the government’s spring economic update, and the document characterizes cryptocurrency ATMs as “a primary means for scammers to deceive victims and for criminals to launder money.”

Cryptocurrency ATMs allow users to deposit cash and exchange it for cryptocurrencies such as Bitcoin, after which they can be transferred to virtual wallets anywhere in the world. CBC News’s previous investigative report, “Feeding Fraud,” revealed that such machines have become a main channel for scammers in Canada to obtain victims’ funds. FINTRAC, Canada’s financial intelligence agency, also reached the same conclusion in an analysis report in February 2023.

At present, Canada has the most cryptocurrency ATMs per capita in the world, with nearly 4,000 machines nationwide, but there is still a lack of industry-specific regulatory laws. The government said that after the ban is implemented, the public will still be able to purchase virtual currencies through physical cash services providers.