Canada proposes ban on crypto ATMs as fraud cases mount

[BlackBoss_]

Even if ATMs were installed in many parts of my city, I wouldn't be interested in using them. I think it would be pointless to say: never reveal your ownership or involvement with bitcoin to the public, as you could potentially become the next target of crime. After all, ATMs are public facilities with no guarantee of privacy. Here, the crime rate involving fiat ATMs for fraud and machine modification is still high. I imagine this would also extend to physical threats if it were a bitcoin ATM.

Bitcoin ATMs and cryptocurrency ATMs charge very expensive service fees so that these ATMs are not my favorite choice and with many other people, such ATMs are like their very last choices. Nobody are ready to pay very expensive service fee especially if there are many other available options to use with much cheaper service fees.

In addition, if they are not knowledgeable and careful practically, Bitcoin / cryptocurrency ATM users might have price rate shocks and severe losses.
Bitcoin ATM Deposit Exchange Rate shocks.

[X-ray]

Even if ATMs were installed in many parts of my city, I wouldn't be interested in using them. I think it would be pointless to say: never reveal your ownership or involvement with bitcoin to the public, as you could potentially become the next target of crime. After all, ATMs are public facilities with no guarantee of privacy. Here, the crime rate involving fiat ATMs for fraud and machine modification is still high. I imagine this would also extend to physical threats if it were a bitcoin ATM.

Bitcoin ATMs and cryptocurrency ATMs charge very expensive service fees so that these ATMs are not my favorite choice and with many other people, such ATMs are like their very last choices. Nobody are ready to pay very expensive service fee especially if there are many other available options to use with much cheaper service fees.

In addition, if they are not knowledgeable and careful practically, Bitcoin / cryptocurrency ATM users might have price rate shocks and severe losses.
Bitcoin ATM Deposit Exchange Rate shocks.

To be honest, these ATM feels like something that we don't even need. A withdrawal from exchange takes 30 seconds from anywhere as long as internet exist and we can cash out to fiat seamlessly using bank ATMs, we aren't charged with outdated premium rates as well.

If people said these ATM is important because it preserves privacy for the KYC less approach, i really doubt that. I mean, these ATMs are monitored by CCTV and even the machine might snapshot our face, the privacy sounds like something that doesn't really exist even worse than one time KYC.

[Haunebu]

It's just a proposal for now and it will probably stay that way since the first BTC ATM in the world was from their country and I really don't think they will give up on them that easily unless the fraud cases continue increasing rapidly over time.

They just need to come up with better ways to secure those ATMs in order to minimize such cases in my opinion.

[Peanutswar]

And it seems the reason why is increases their numerous numbers of people doing money laundering with the use of cryptocurrency and one of their solution is now banned with the use of cryptocurrency and at the same time, stops the use of crypto ATMs but if they have a regulated crypto platform in their country and has a submitted KYC I guess its just basic to them to caught these people who are doing this because we knew that before having an account or even have their wallet that is supported by their country has a KYC verified or else they are just accepted any form of transaction with their ATMs if ever someone could confirm this?

[SilverCryptoBullet]

And it seems the reason why is increases their numerous numbers of people doing money laundering with the use of cryptocurrency and one of their solution is now banned with the use of cryptocurrency and at the same time, stops the use of crypto ATMs but if they have a regulated crypto platform in their country and has a submitted KYC I guess its just basic to them to caught these people who are doing this because we knew that before having an account or even have their wallet that is supported by their country has a KYC verified or else they are just accepted any form of transaction with their ATMs if ever someone could confirm this?

As far as I read, they have strict regulations on cryptocurrency and user's tax obligation.
General
https://www.canada.ca/en/financial-consumer-agency/services/payment/digital-currency.html#toc5

Crypto assets include many things like payment tokens, utility tokens, security tokens, NFTs, stable coins but not limited to those things.
https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/cryptocurrency-guide.html

Many activities consider as cryptocurrency asset transactions like buy, trade, gift, donation, gambling, more
https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/cryptocurrency-guide/crypto-assets-tax-obligations.html

Citizens are responsible to keep books and records of their crypto for tax filing annually, it's strict actually.

[7788bitcoin]

The last we heard of is Tennessee, a state in the United States that banned bitcoin and crypto ATMs. I think Canada is watching closely and now proposing to ban bitcoin and crypto ATMs.

Canada also stated the same reason which is scam, that crypto ATMs are tools for scammers.

The proposal is to ban BTCitcoin ATM because the scammers are targeting elderly and asking them to deposit money in these ATMs and as per the reports a total of over $700 million were lost to these scammers.

I wish someone come up with a counter proposal on how to avoid these scams or limit the amount of coins you can purchase when you initially does a transaction.

[SeriouslyGiveaway]

I just saw this post and knew that the first ever Bitcoin ATM was installed and operated in Vancouver, Canada. It's quite surprising information for me, as I thought it was in the USA.

🔥 Today is an important date in Bitcoin history!

🏧 Bitcoin ATM Day

On May 2, 2013, the world’s first Bitcoin ATM was installed in a coffee shop in Vancouver. It was equipped with a palm scanner designed to prevent users from processing more than 3,000 Canadian dollars per day.

💲 On every historical date — go to the Rewards Center and claim a no-deposit bonus in SATS with no wagering.

Learning about it with curiosity, I found these articles and I'd like to share them here too.
A guide to Bitcoin ATM: History and the rise of Bitcoin ATMs.
A first Bitcoin ATM in Vancouver.
The first Bitcoin ATM.

[coupable]

Even if ATMs were installed in many parts of my city, I wouldn't be interested in using them. I think it would be pointless to say: never reveal your ownership or involvement with bitcoin to the public, as you could potentially become the next target of crime. After all, ATMs are public facilities with no guarantee of privacy. Here, the crime rate involving fiat ATMs for fraud and machine modification is still high. I imagine this would also extend to physical threats if it were a bitcoin ATM.

What you are calling for is tu curb with ATMs as it becomes a mean of fraud for criminals and a mean of extortion for the government. Doesn't this remind you about other similar things? Let's say producing and selling knives. Criminals use knives to kill and threat other with physical harm, and producers sell it with high price considering it a useful toolo in kitchen and for other purposes. Why don't we call for stop producing traditional knives and replace it with some stones or another metal?

I think the government pretend to fight crimes and criminals, while it is actually fighting bitcoin and cryptocurrencies in general. Applying higher fees seems not to prevent people from using bitcoin in all possible ways.

[Altryist]

The last we heard of is Tennessee, a state in the United States that banned bitcoin and crypto ATMs. I think Canada is watching closely and now proposing to ban bitcoin and crypto ATMs.

Canada also stated the same reason which is scam, that crypto ATMs are tools for scammers.

https://www.coindesk.com/markets/2026/04/29/canada-proposes-ban-on-bitcoin-atms-as-fraud-cases-mount

This is only a proposal for now and has not been confirmed yet. But I think that if scammers are widely using crypto ATMs in their schemes and this makes it harder for law enforcement agencies to trace the entire chain and identify the criminals, then in the end it could lead either to a significant reduction in the number of crypto ATMs and the companies that operate them, or to a situation where using a crypto ATM would require mandatory identity verification. Although even in that case, I think scammers would probably still find ways to work around it.

[Charles-Tim]

This is only a proposal for now and has not been confirmed yet. But I think that if scammers are widely using crypto ATMs in their schemes and this makes it harder for law enforcement agencies to trace the entire chain and identify the criminals, then in the end it could lead either to a significant reduction in the number of crypto ATMs and the companies that operate them, or to a situation where using a crypto ATM would require mandatory identity verification. Although even in that case, I think scammers would probably still find ways to work around it.

Assuming scammers met a women online, they fell in love, but the scammer just want to scam the women. Later the scammer introduced a very profitable business to the women, but which is a made up story to scam the woman. The scammer told the women to send the money through bitcoin ATM. The women got verified before using the ATM and send the money but it was all a scam.

Yes, scammers will have other ways around to scam people.

[Nwada001]

In addition, if they are not knowledgeable and careful practically, Bitcoin / cryptocurrency ATM users might have price rate shocks and severe losses.
Bitcoin ATM Deposit Exchange Rate shocks.

I remember the type of shock I received before I created that thread. Bitcoin ATMs, even from then till now, have not still had any change in terms of fees. I would rather use those ATMs that allow you to buy stablecoin than Bitcoin (if need be) because of the overprice, which is more than the regular exchange rate that they use.

Imagine a situation where you are receiving money from a relative abroad and the money is for something important you directed them to use it for, meaning only for the money to get to you, and it has been cut due to their fee, and you will be forced to complete it from your own pocket because you recommended that method in the first place.

[Dogedegen]

Does that solve the scamming problem?

Bans never solve any kind of scamming, they just shift the tool that is being used. You can't prevent someone from losing money if they are vulnerable to this kind of thing. How many people still send Amazon gift cards to Microsoft support scammers? Bitcoin or crypto ATMs have nothing to do with this, they are a very tiny problem in the industry of fraud.

Banning crypto ATMs is not the same thing as banning crypto; if the ATMs are banned or dismantled, people over there can still use exchanges and other means to buy and sell their crypto, with the common way that scammers usually direct their victims to make use of bitcoin ATMs. The need for such a ban indeed needs to arise; even with the ATM's ridiculous fee, people are still using it to move money untraced.

It is not the same, but it is pretty against crypto and it is harmful so do not minimize the negativity of this news. Scammers will direct people to buy crypto and sell them in other ways as they have been doing for people who live in places where there are no ATMs, so please do not repeat this excuse that is given here because it is just wrong.

And it seems the reason why is increases their numerous numbers of people doing money laundering with the use of cryptocurrency and one of their solution is now banned with the use of cryptocurrency and at the same time, stops the use of crypto ATMs but if they have a regulated crypto platform in their country and has a submitted KYC I guess its just basic to them to caught these people who are doing this because we knew that before having an account or even have their wallet that is supported by their country has a KYC verified or else they are just accepted any form of transaction with their ATMs if ever someone could confirm this?

Having a KYC restriction on the machine does nothing except make the machine less useful and have fewer customers. When it comes to stopping crime such as fraud it does nothing because the person who is cheated will gladly do the KYC at the machine and then deposit the money. So there is no way to solve this actually other than education. If they keep adding more restrictions and limitations to these machines in the end they will be useful. What is going to be next? You have to provide a wallet that has KYC done to it like from a platform such as an exchange? 

The proposal is to ban BTCitcoin ATM because the scammers are targeting elderly and asking them to deposit money in these ATMs and as per the reports a total of over $700 million were lost to these scammers.

I wish someone come up with a counter proposal on how to avoid these scams or limit the amount of coins you can purchase when you initially does a transaction.

Much more is scammed with other tools, so banning this is not a solution.

[gabbie2010]

The last we heard of is Tennessee, a state in the United States that banned bitcoin and crypto ATMs. I think Canada is watching closely and now proposing to ban bitcoin and crypto ATMs.

Canada also stated the same reason which is scam, that crypto ATMs are tools for scammers.

https://www.coindesk.com/markets/2026/04/29/canada-proposes-ban-on-bitcoin-atms-as-fraud-cases-mount

Its a pity that criminals are using Canadian ATMs to scam people and using it to launder funds, we are all aware of criminals laundering funds for terrorism, my suggestion is that if the Canadian government can find a means to monitor all forms of transactions via those Cryptos ATMs it would definitely put a stop to it unfortunately Cryptos is transacted anonymously thus the government has no control over it that is why criminals are taking advantage on it, Canada who had been a forefront in the adoption of Cryptos is now proposing to ban it that is absolutely setback to Cryptos enthusiasts in that country.

[Z-tight]

If people said these ATM is important because it preserves privacy for the KYC less approach, i really doubt that. I mean, these ATMs are monitored by CCTV and even the machine might snapshot our face, the privacy sounds like something that doesn't really exist even worse than one time KYC.

BTC atm's are not no-kyc machines. Transactions worth a small amount of money may not trigger kyc request. But if you are using it for larger transactions, based on the operator, ~ $1000 or more, then you would have to provide kyc information in order to use the machine. Atm operators have to register with the authorities in the jurisdiction they operate, so they have to comply with their kyc/aml laws.

[tread93]

The last we heard of is Tennessee, a state in the United States that banned bitcoin and crypto ATMs. I think Canada is watching closely and now proposing to ban bitcoin and crypto ATMs.

Canada also stated the same reason which is scam, that crypto ATMs are tools for scammers.

https://www.coindesk.com/markets/2026/04/29/canada-proposes-ban-on-bitcoin-atms-as-fraud-cases-mount

Yeah there is crazy negative sentiment for any crypto atm or btm in the states I am finding out but now in canada too, EH? Thats pretty crazy!

[Mate2237]

Banding crypto ATMs is not the solution to this type of problems, if there is a security problem then deal with it from the root course. This same thing applies here to if there is a case of fraud then try and look at the cause in a way to solving the problems. There has been fraud even with our normal ATM so singling out , crypto ATMs and threats of band is not a good one.


This is not a good one coming from the Canadian government, because these types of moves will not solve fraud, steps should be taken to prevent it from the beginning.

[Vod]

Canada is not looking to ban crypto ATMS - they just want to regulate them the same as other ATMs.   You know, require cameras and other security features, and move them closer to an actual person - noy just in an empty hallway in a mall where a senior can deposit thousands without anyone intervening.

[philipma1957]

Canada is not looking to ban crypto ATMS - they just want to regulate them the same as other ATMs.   You know, require cameras and other security features, and move them closer to an actual person - noy just in an empty hallway in a mall where a senior can deposit thousands without anyone intervening.

yeah cash limits such as

250CAD a day
1000CAD a week
2000CAD a month would go a long way to slowing theft down.

[Jegileman]

The last we heard of is Tennessee, a state in the United States that banned bitcoin and crypto ATMs. I think Canada is watching closely and now proposing to ban bitcoin and crypto ATMs.

Canada also stated the same reason which is scam, that crypto ATMs are tools for scammers.

https://www.coindesk.com/markets/2026/04/29/canada-proposes-ban-on-bitcoin-atms-as-fraud-cases-mount

To fight against the use of Bitcoin and push for the ban of it really involves every means possible by them to use any negativity related to or close to bitcoin against it. Bitcoin ATMs may have been used for scam purposes, but is that reason enough to ban it when fiat currencies have been used for the same purposes for many years and is still actively in use. The truth is that the government is not whom we can fight and have to live with their own perception and rules even though it is clear that Bitcoin is not meant for that purpose but scammers are just taking advantage of it just like they do anytime they have a chance to use the fiat for the same purpose.

[gforce16one]

canada is a downhill country, until they accept btc embrace btc, banks accept btc, no capital gains tax
then canada will be amazing.