Summary
- Canada’s Liberal government said its Spring Economic Update included a proposal for a nationwide ban on crypto ATMs.
- FINTRAC said Bitcoin ATMs were highly likely to be used as a major channel for fraud and money laundering.
- Canada’s Parliament is discussing a ban on cryptocurrency donations related to elections amid concerns over damage to political funding transparency.
Forecast Trend Report by Period
Canada is moving to ban cryptocurrency automated teller machines nationwide.
CoinDesk reported on April 28 that the proposal was included in the Liberal government’s Spring Economic Update released that day. The Canadian government views crypto ATMs as a major vehicle for fraud and money laundering.
Unlike conventional ATMs, crypto ATMs allow users to convert fiat currency into cryptocurrencies such as Bitcoin and send the funds to digital wallets. Because the machines can transfer money to overseas wallets without passing through the traditional financial system, they have long drawn scrutiny as a potential tool for money laundering.
The move comes as concerns mount among Canadian investigators and regulators. FINTRAC, Canada’s financial intelligence agency, said in an internal 2023 report that Bitcoin ATMs were highly likely to be used by fraudsters to receive and launder criminal proceeds.
Canada’s Parliament is also discussing a ban on cryptocurrency donations related to elections, amid concerns that the anonymity of crypto transfers could undermine transparency in political funding.
Canada became the first country to install a Bitcoin ATM in 2013.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
