Canada’s federal government is planning to ban crypto ATMs to address rising fraud, CBC News reported Tuesday. Officials say these machines are widely used by scammers to collect money from victims and move illicit funds.

A crypto ATM is a machine connected to the blockchain network that allows users to convert cash into cryptocurrency, or sometimes crypto into cash. Transactions are completed by scanning a wallet QR code, and the funds are transferred digitally rather than dispensed physically like regular ATMs.

While features such as rapid processing and minimal verification make crypto ATMs convenient, they also leave the systems vulnerable to misuse.

Crypto-ATM-linked scams are a growing subset of fraud losses…