Should crypto ATMs be banned in Canada?

CTV’s Karis Mapp takes a look at why the federal government is considering banning cryptocurrency ATMs.

Cryptocurrency ATMs could become a thing of the past in Canada.

In the 2026 spring economic update, the federal government proposed an ATM ban to protect Canadians from fraud. The update called the machines “a primary method for scammers to defraud victims.”

Cryptocurrency ATMs are frequently found in convenience stores, such as Farah Foods in Kitchener, Ont.

“It’s been in the store for about a year or two,” Pranitha Beela, the store’s manager, said. “We do not get a lot of traffic on it, unfortunately.”

What are cryptocurrency ATMs?

Cryptocurrency ATMs look similar to the machines found in banks, but permit transactions in cryptocurrency.

“You can use the ATM as a means of interacting not with your regular bank account, but with your cryptocurrency bank account, which is known as a ‘wallet,’” technology analyst Carmi Levy said.

“If you have money, for example, you can take regular cash and you can deposit it into your crypto wallet,” he explained.

There are other ways to add or withdraw funds from a cryptocurrency wallet, including online management methods and some banks.

How are criminals using cryptocurrency ATMs?

Cryptocurrencies are often used by criminals to commit fraud and launder money.

“You can take the proceeds from, for example, drug activity or gambling and you can deposit it into a crypto ATM, move it directly into your wallet, and there’s no record of that,” Levy explained.

Scammers also frequently ask victims to make deposits at crypto ATMs and transfer those funds to the scammer’s accounts. Because the machines connect to virtual currency exchanges instead of a traditional bank account, once the funds are added, the source of deposited cash is almost untraceable.

“It’s very difficult for traditional banking infrastructure or federal oversight to track those activities,” Levy said.

“The technology in and of itself is not criminal, but it has been co-opted by criminals on a fairly significant basis,” he added.

The cases have been difficult for law enforcement to pursue.

“These cases are extremely difficult to investigate as crypto is worldwide,” Waterloo Regional Police Service Detective Joshua Rhab said. “It’s instantaneous, it’s decentralized, it’s electronic, and relatively anonymous. So in many of these cases, perpetrators are positioned in other parts of the world where police in North America have little to no influence. So when we discover victims funds have been deposited in some of these countries, we oftentimes get little to no co-operation, often due to geopolitical issues.”

Rhab said the machines themselves are not the problem, they are simply a tool.

“When I’ve dealt with these crypto ATM companies before, they’re often very helpful. And, they’re doing their part to try and prevent the fraud. But lots of times they’re being used in a serious way.”

“They’re taking advantage of Canadians”

According to a 2024 report from the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), notable volumes of suspicious transactions at crypto ATMs are happening in Ontario, specifically in Hamilton and Ottawa.

“Suspicious transaction reports from virtual currency automated teller machine (ATM) operators indicate that video monitoring footage in virtual currency automated teller machines increasingly shows victims on the phone during the transaction, likely receiving instructions on how to complete the virtual currency transfer,” the FINTRAC report said. “New investors, elderly persons and new immigrants may be particularly vulnerable to virtual currency-related fraud schemes.”

Between 2020 and 2025, the Canadian Anti-Fraud Centre received reports of $177 million in losses where the victims used cryptocurrency services, including ATMs, to send funds to scammers.

“Based on what we’re seeing, [the scammers] trick victims into thinking that [the ATMs] are a safe payment method to use, to send funds directly to whoever [the scammers] claim to be because they’re taking advantage of Canadians not knowing that these ATMs are all about,” explained Jeff Horncastle, a client and communications outreach officer for the Canadian Anti-Fraud Centre.

Beela said the ATM at Farah Foods has been used for nefarious purposes.

“We actually did happen to get a call ourselves from somebody who was trying to deposit money into it or something. Turns out, it was a scam call,” she said.

“If it happens here even once, it might have happened in other places as well,” Beela added.

If the proposed ban goes into effect, it might prevent someone else from falling victim to a scam, but there will still be other ways for people to access crypto wallets.

“There are many mainstream banks that provide similar services,” Levy explained. “There are also dedicated services that will provide these kinds of services to you. So, it’s not like you can’t do it. It’s just a little less convenient because there’s not a machine sitting in the corner of your local convenience store.”