Companies will be allowed to operate machines that let users exchange cash for crypto if they hold a provincial licence to do so, under federal legislation introduced Tuesday. (The Logic)

Talking point: The bill is a win for crypto ATM companies that have lobbied Ottawa to tighten regulations on the machines rather than ban them outright. Operators with provincial licences will have to verify the ID of everyone who uses the machines, report every transaction to Fintrac within 15 days and limit daily transactions to $1,000. Crypto ATMs have a widespread fraud problem, with scammers favouring the machines because they let victims send money instantly anywhere in the world, with no way to reverse the transaction. Currently, the only province with a provincial licensing regime for crypto ATMs is Quebec. Operating an unlicensed crypto ATM would become an offence 18 months after the legislation receives royal assent, possibly giving other provinces time to develop their own licensing systems.

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