Canada has moved to tighten oversight of cryptocurrency use by lifting a nationwide ban on crypto ATMs while advancing legislation to ban donations of digital assets in federal elections.
Summary
- Canada has proposed a nationwide ban on crypto ATMs, and CBC News reports that they are widely used in fraud schemes.
- FINTRAC has identified crypto ATMs as a frequent channel for suspicious transaction reports linked to scams.
- Lawmakers have advanced Bill C-25 to ban crypto donations in elections, citing challenges in verifying donors’ identities.
According to CBC News, the federal government outlined plans in the Spring Economic Update 2026 to ban crypto ATMs, describing them as a key tool used by fraudsters to withdraw funds from victims and process illegal currency.
The report notes that officials have linked these devices to fraud activity across the country, with investigations identifying them as the main route through which victims are instructed to transfer money.
A months-long investigation by CBC News, which included input from law enforcement agencies, financial regulators, industry participants, and fraud victims, found that crypto ATMs have become a key mechanism in the operation of the scam. Canada’s Financial Services and Institutional Reports came to a similar conclusion in a February 2023 analysis of suspicious transaction reports, identifying these devices as an emerging route used in fraud schemes.
Across Canada, nearly 4,000 crypto ATMs are currently operating, the highest per capita in the world, according to CBC News.
These machines allow users to deposit cash and convert it to cryptocurrencies like Bitcoin, which can be sent to digital wallets with limited verification of identity.
Transactions under $1,000 often require only a phone number, while the lack of personal supervision eliminates the possibility of intervention during suspected fraud attempts.
Although crypto ATMs are regulated as money services businesses, CBC News reports that Canada does not yet have industry-specific regulations governing their operations. Officials pointed to this gap while outlining the proposed ban as part of a broader effort to address fraud risks linked to digital asset access points.
Lawmakers are moving forward with a ban on crypto donations
Separately, lawmakers continued to advance restrictions on the use of cryptocurrency in political financing through Bill C-25, known as the Fair and Free Elections Act. The proposed law has passed the second reading in the House of Commons and will prevent political parties, candidates, and associations from accepting crypto donations.
The bill extends the limit to leadership campaigns, nominating contests, passenger organizations, and third-party advertisers, requiring that any disallowed contributions be returned or turned over to the Receiver General within 30 days. According to statements by government officials, the proposal addresses concerns about verifying the identity of donors and tracing the origin of funds when using digital assets.
