Headline: Canada moves to outlaw crypto ATMs, citing surge in fraud and money‑laundering risks Canada’s federal government has proposed a nationwide ban on crypto ATMs as part of a broader crackdown on fraud and money‑laundering. The measure — included in the Liberal government’s Spring Economic Update released Tuesday — would eliminate the kiosks the government now describes as a “primary method” for scammers and criminals to convert cash into cryptocurrency and move illicit proceeds. Why Ottawa is targeting the machines Crypto ATMs allow users to swap physical cash for cryptocurrencies such as bitcoin and send those funds to digital wallets, often bypassing traditional banking channels and standard customer identification controls. Authorities say that feature has made the kiosks a favorite tool for fraudsters and money‑launderers. “To protect Canadians by shutting down a primary method for scammers to defraud victims, and for criminals to place their cash proceeds of crime,” the government said, it plans to prohibit the machines entirely. What the evidence says The ban proposal follows mounting concern from law enforcement and regulators. A 2023 internal analysis by Canada’s financial intelligence agency FINTRAC concluded that bitcoin ATMs are likely to remain “the primary method” fraudsters use to collect and launder stolen funds. The issue has also surfaced in political debates: Canadian lawmakers are weighing a ban on accepting crypto as a payment method for electoral donations amid worries about the anonymity of transfers. Context and likely impacts Canada was home to the world’s first bitcoin ATM, installed in a Vancouver coffee shop in 2013 — a reminder of the country’s early role in crypto on‑ramps. If the ban becomes law, it would remove one of the more accessible fiat‑to‑crypto entry points for everyday users and could push some activity into less transparent channels. The industry and consumer advocates are likely to raise concerns about access to regulated on‑ramps and the impact on legitimate users, while regulators argue the step is necessary to reduce fraud and stem illicit cash flows. Next steps The proposal is part of the government’s economic update and will require drafting into legislation and parliamentary approval before becoming law. Proponents point to public‑safety and anti‑crime benefits; opponents will likely argue for tighter regulation instead of an outright ban. The coming weeks should clarify how Ottawa balances those priorities. Read more AI-generated news on: undefined/news