TechFlow News, April 29: According to CBC News, the Canadian federal government has announced plans to impose a nationwide ban on cryptocurrency ATMs to protect the public from fraudsters. The proposal was formally introduced in the government’s Spring Economic Update, which characterizes cryptocurrency ATMs as “a primary tool used by fraudsters to deceive victims and by criminals to launder money.”
Cryptocurrency ATMs allow users to deposit cash and exchange it for cryptocurrencies such as Bitcoin, which are then transferred to any digital wallet worldwide. CBC News’ prior investigative report, “Feeding Fraud,” revealed that such machines have become the primary channel through which fraudsters in Canada obtain victims’ funds. Canada’s financial intelligence agency, FINTRAC, reached the same conclusion in its February 2023 analytical report.
Currently, Canada has the highest number of cryptocurrency ATMs per capita globally—nearly 4,000 units nationwide—but still lacks industry-specific regulatory legislation. The government stated that, following implementation of the ban, the public will still be able to purchase virtual currencies through licensed money service businesses.
