Ms. Chair, honourable members of the committee, according to the Canadian anti-fraud centre's latest annual report, crypto ATMs account for only 2.2% of the reported fraud losses in Canada. These risks are real and they must be addressed, but the numbers show that a blanket prohibition may not be the most targeted or effective response.
My name is Koleya Karringten. I'm the executive director for the Canadian Bitcoin Consortium. The consortium is the largest national industry association representing responsible participants across Canada's digital asset sector, including operators, technology providers and compliance-focused businesses. We engage regularly with federal and provincial governments, including through Finance Canada's advisory committee on money laundering and terrorist financing and broader economic policy forums.
I'd like to acknowledge the Government of Canada's continued focus on strengthening Canadian integrity and protecting Canadians from fraud. Those are objectives that we share, and we support effective, enforceable policy that improves oversight and reduces harm.
The spring economic update also highlights the growing relevance of digital assets, including stablecoins. This is an important development. Stablecoins are increasingly being considered globally as part of modern payment infrastructure, with implications for settlement efficiency, cross-border transactions and financial innovation.
As Canada considers its approach, there is an opportunity to ensure that policy supports both financial stability and economic competitiveness. Jurisdictions such as the United States, the United Kingdom and the European Union are actively developing regulatory frameworks that bring stablecoin activity into supervised environments. Maintaining alignment with these developments would be an important way to ensure Canada remains a competitive and credible financial jurisdiction.
From our perspective, the principle is straightforward: Where activity is brought within clear regulatory frameworks, it becomes transparent, more observable and more enforceable. Where it is pushed outside of those frameworks, visibility and control are reduced.
That same principle applies to the committee's consideration of crypto ATMs. We are concerned that a blanket prohibition may not achieve the intended policy outcome but may, instead, reduce visibility for regulators and law enforcement. Where compliant operators are removed, activity does not disappear. It shifts to less transparent channels with fewer reporting obligations and fewer points of intervention.
Australia shows what targeted regulation can look like. In 2025, AUSTRAC introduced strict new conditions for crypto ATM operators, including transaction caps, mandatory KYC, and independent audits. We know what this looks like because Australia did it just months ago, and it's already delivering better oversight and stronger protections.
In that context, the policy objective should be to retain and strengthen oversight within the system rather than displace it. Responsible operators today already apply meaningful safeguards. These include full identity verification for transactions, transaction monitoring, blockchain analytics, fraud detection measures and structured reporting aligned with FINTRAC's requirements. In practice, this allows certain forms of activity to be traceable, reportable and actionable from an enforcement perspective.
A blanket prohibition would remove that layer of visibility while also impacting Canadian small businesses, including independent retailers who host these machines. Our recommendation is, therefore, focused on being practical. The consortium urges this committee to recommend against a blanket ban on crypto ATMs in favour of a mandatory national compliance standard with a reasonable transition period for certified operators. This standard could include robust KYC, transaction limits, fraud prevention controls, licensing requirements and stronger enforcement tools.
The consortium stands ready to support the work immediately. We can provide technical input, share compliance practices and contribute to informed policy development alongside Finance Canada and FINTRAC.
Ms. Chair and members of the committee, our objective is aligned with yours. Effective policy should reduce harm while preserving visibility, enforceability and confidence in the system. With the right approach, Canada can achieve this balance while remaining competitive in a rapidly evolving financial landscape.
Thank you for your time. We'd be pleased to answer any questions.