The federal government announced it’s planning to ban crypto ATMs in order to protect Canadians from scammers using the machines to defraud victims.

The Liberals’ spring economic update on Tuesday referred to crypto ATMs as a “primary method for scammers to defraud victims and for criminals to place their cash proceeds of crime.”

Crypto ATMs might look a lot like a traditional banking machine, but instead of dispensing cash from your bank account, the majority of these machines allow customers to deposit cash and then convert it into cryptocurrency, like Bitcoin. Then, they can send it to a virtual wallet anywhere in the world.  

Last year, CBC News spent months looking into this industry, speaking with law enforcement, financial regulators, cryptocurrency experts, former crypto ATM company employees, the operators themselves and fraud victims for a three-part series Feeding Fraud: The Crypto ATM Problem. 

The investigation revealed that these machines, which currently operate legally in Canada, have become the main vehicle fraudsters use to get money from scam victims across the country. Canada’s financial intelligence agency, FINTRAC, came to that conclusion in a February 2023 analysis of suspicious transaction reports submitted to the agency. 

Crypto ATMs are touted as a low-barrier, convenient way to buy or sell crypto, but that’s also what makes them appealing to fraudsters, CBC’s investigation found. 

Funds are sent quickly, a bank account isn’t required, most transactions only require a phone number if depositing under $1,000 and, unlike a bank, there’s no human interaction or teller trained to recognize a fraud unfolding. 

Canada has the most crypto ATMs per capita in the world, but currently has no industry-specific regulations. There are nearly 4,000 crypto ATMs across the country and more than 39,000 around the world.

WATCH | CBC investigation uncovers why crypto ATMs are so popular for fraudsters:

How fraudsters are using crypto ATMs to get your money

Crypto ATMs are the main way fraudsters are getting money from Canadians, according to a federal report. The CBC’s Angelina King and Farrah Merali dive into the issue in the three-part series Feeding Fraud: The Crypto ATM Problem.

Last fall, CBC News requested interviews with both Finance Minister François-Philippe Champagne and FINTRAC to ask about what (if any) action they were taking to address crypto ATMs becoming the main vehicle fraudsters use to get money from Canadian scam victims. 

Neither request was granted. But when asked on Parliament Hill about the lack of specific regulations in the wake of the FINTRAC report, Champagne did not address the agency’s finding, instead telling CBC the government is looking at all options to prevent financial crimes.

“This is something we’re looking at very carefully and very seriously,” said Champagne last fall.

Tuesday’s economic update does not include many details on the proposed ban of crypto ATMs. 

Currently, the machines are regulated like any other money services business (MSB) in Canada, a designation that includes foreign exchange dealers, regular ATMs and money-transfer services, like Western Union. The government’s update does say the measure will ensure Canadians can still buy virtual currencies from “brick-and-mortar MSBs, while better protecting MSBs from illicit activity.” 

Other jurisdictions have previously taken action to fight fraud using crypto ATMs.

The U.K. effectively banned the machines by creating a licensing infrastructure in 2021 that hasn’t issued any licences to operators. New Zealand is proposing a ban on the machines and Australia introduced daily transaction limits last summer following a major investigation from its financial intelligence agency and police services.

South of the border, half of U.S. states have proposed or implemented laws to impose measures like daily transaction limits per customer, caps on transaction fees and requirements that operators issue refunds to scam victims.

Key Takeaways:

• Galaxy Digital posted a $216M Q1 loss as the crypto market fell approximately 20% by March 31.
• Galaxy Digital assets fell 12% to approximately $10B, showing crypto sector volatility impact.
• Galaxy Digital bets on Helios, adding 830MW; Coreweave deal to drive Q2 revenue.

Mike Novogratz’s Galaxy Holds $2.6B Cash as $216M Loss Tests Market Strategy

Galaxy Digital Holdings posted a sharp quarterly loss of $216 million as falling digital asset prices weighed on its investment portfolio, underscoring the sector’s continued sensitivity to market swings even as the firm expands into infrastructure.

The company reported the net loss of $216 million for the three months ended March 31, compared with a $482 million loss in the prior quarter. The improvement was largely relative, as a roughly 20% drop in total crypto market capitalization during the period eroded the value of Galaxy’s holdings. Adjusted EBITDA came in at negative $188 million, while adjusted gross loss totaled $88 million.

Total assets fell 12% quarter-on-quarter to just under $10 billion, and equity declined to $2.8 billion. Still, Galaxy maintained a strong liquidity position, holding $2.6 billion in cash and stablecoins.

The firm’s core digital assets business showed resilience. Adjusted gross profit in the segment reached $49 million, only slightly below the previous quarter, supported by steady fee income and transaction revenue. Trading volumes held flat even as broader market activity declined, while the average loan book shrank 20% to $1.4 billion amid client deleveraging.

Pressure was most evident in Galaxy’s Treasury and corporate unit, which recorded a $140 million adjusted gross loss driven by unrealized losses on digital assets and investments.

At the same time, Galaxy is pressing ahead with a strategic pivot toward data infrastructure. In April, shortly after quarter-end, the company delivered its first data hall at the Helios campus to Coreweave, marking the start of revenue generation for the project.

The Helios site has also secured regulatory approval for an additional 830 megawatts of power capacity, bringing total approved capacity to more than 1.6 gigawatts. The expansion reflects strong demand for high-performance computing infrastructure, particularly tied to artificial intelligence (AI) workloads.

Asset management remained a mixed picture. Assets under management stood at roughly $5 billion, down from the previous quarter due to market depreciation, though the business attracted $69 million in net inflows. Galaxy also disclosed new partnerships, including a role supporting staking infrastructure for a Blackrock Ethereum exchange-traded product.

During the quarter, Galaxy repurchased $65 million worth of shares and completed its delisting from the Toronto Stock Exchange, consolidating trading on Nasdaq.

The results highlight a company navigating volatile crypto markets while betting on more stable, long-term revenue streams. Whether that shift can offset continued price-driven earnings swings remains an open question.

(FOX 9) – Lawmakers are on the verge of banning cryptocurrency kiosks in Minnesota, citing a surge in scams and growing concerns from law enforcement.

Minnesota cryptocurrency kiosk ban

What we know:

The Minnesota House has passed S.F. 3868, which would ban cryptocurrency kiosks statewide. The legislation previously passed the Minnesota Senate earlier this month and now heads to Gov. Walz for his signature to become law. 

If signed, Minnesota would become one of the first states to ban cryptocurrency kiosks in response to widespread fraud.

Dig deeper:

Cryptocurrency kiosks, which look like ATMs, allow people to use cash or debit cards to buy cryptocurrency. Once cash is converted, it becomes untraceable and nearly impossible for law enforcement to investigate.

Minnesota currently has 350 licensed cryptocurrency kiosks run by about eight companies, according to the Minnesota Department of Commerce.

The backstory:

A 2024 FBI report found that more than $100 million in cryptocurrency theft has been reported nationally.

In just the first six months of 2025, the FBI found that Americans lost $240 million in crypto kiosk scams.

Lawmakers say the move is in response to direct feedback from law enforcement and advocates working with scam victims.

Minnesota legislators passed a law two years ago requiring the kiosk owners to limit transaction amounts and refund victims in certain situations.

What they’re saying:

“We’re hearing directly from law enforcement that these crypto kiosks have become a prime tool for scammers to target some of our most vulnerable neighbors, especially seniors living on fixed incomes. When Minnesotans are losing their life savings in transactions that are nearly impossible to trace or recover, we have a responsibility to act,” Rep. Koegel, an author of the bill, said in a statement. “This legislation is about protecting people, closing a clear avenue for fraud, and ensuring no one is left to choose between financial security and falling victim to a scam. This is about working together to put Minnesotans first and making sure our laws keep pace with the tactics scammers are using to exploit our communities.”

The other side:

Throughout committee hearings, crypto kiosk owners have said the proposed law goes too far.

A statement to FOX 9 said in part: “We can’t speak for the entire industry, but CoinFlip holds itself to the highest standards of compliance, consumer protection, and transparency. We have been a registered Money Services Business (MSB) since 2015, support commonsense legislation, and believe all operators should meet consistent, clearly defined regulatory standards.”