The Canadian federal government plans to ban cryptocurrency ATMs, citing their role in fraud and money laundering.
In the country's spring economic update released Tuesday, the government said that it is proposing to ban crypto ATMs, describing them as a "primary method for scammers to defraud victims and for criminals to place their cash proceeds of crime."
Despite the proposed ban, Canadians can still buy crypto assets from legitimate brick-and-mortar money services businesses. The government did not elaborate further on the proposal or a timeline in the Tuesday document.
According to data cited by CBC News, Canada is home to roughly 4,000 crypto ATMs — one of the highest concentrations in the world — yet the sector operates without industry-specific regulations.