Ottawa’s plan to ban cryptocurrency ATMs is drawing pushback from parts of Canada’s crypto industry, with operators urging the federal government to slow down and work on fraud-prevention measures before removing the machines outright. The proposed ban was included in Canada’s Spring Economic Update as part of a wider financial-crime package aimed at scams, money laundering and illicit cash movement. 

The government’s case is built around consumer harm. Federal officials have described crypto ATMs as a tool used by scammers to defraud victims and by criminals to convert proceeds of crime into digital assets. Canada currently has just under 4,000 crypto…