Canada Will Ban Nearly 4,000 Bitcoin Atm Machines
Canada will ban bitcoin atm machines, targeting nearly 4,000 units that officials say have helped scammers and criminals move money. The move follows a public inquiry that found the country lacked a cohesive anti-money-laundering strategy. For users, that closes one payment channel regulators say has been abused for fraud and laundering.
Jessica Davis On Financial Crime
Jessica Davis, a former intelligence analyst and financial crime expert, called the new enforcement push meaningful. “The fact we’re actually seeing the creation [of a] new enforcement agency is a meaningful investment and hopefully signals the understanding of the seriousness of the challenge.”
More than a quarter of a century has passed since Fintrac began operating as Canada’s financial intelligence unit, and last year it uncovered $45bn in transactions linked to money laundering, counterterrorist financing, sanctions and evasion disclosures. Davis said, “It’s a figure that could be too high or far too low – we just don’t fully know the scope of financial crime in this country.”
Parliament Advances Financial Crimes Agency
First reading for the Financial Crimes Agency bill came this week in parliament, with the governing Liberals introducing the legislation. The new agency will investigate and prosecute financial crimes, while also reducing the scope and mandate of Fintrac and the Royal Canadian Mounted Police in those cases.
Nearly 4,000 cryptocurrency ATMs give Canada the most per capita in the world, a concentration that helps explain why officials are moving against them now. Davis said, “There is a lack of funding, a lack of skills, lack of resources and lack of political will. But financial crimes investigations are long, complex and require sustained resources, which I’m hopeful we’re now going to see put in place.”
US$3tn And Binance Fallout
More than US$3tn in illicit funds moved through the global financial system in the previous year, according to a 2024 report. A separate 2024 US treasury department report said those efforts had had “devastating economic and social impact” on citizens.
Record $4.3bn penalties and a pardon for Changpeng Zhao sit in the background of this crackdown, showing how uneven the response to financial crime can be. Canada’s bet is that a dedicated agency, plus a ban on the ATMs most often used to cash out scams, will leave less room for abuse.
