Canada has one of the most well-established crypto regulatory frameworks in the world. Exchanges are regulated as Money Service Businesses (MSBs) by FINTRAC, and several are also registered with provincial securities regulators. Canada made history in 2021 as the first country to approve a Bitcoin ETF (the Purpose Bitcoin ETF), which signaled strong institutional acceptance of digital assets.
**How Fees Compare**
Shakepay charges no explicit fees but builds a 1.5-2% spread into its prices. Newton uses similar spread-based pricing at 0.5-1%. Bitbuy charges 0.1-0.2% on its Pro platform. Wealthsimple Crypto charges 1.5-2% spreads. Kraken offers 0.16-0.26% for CAD trading pairs. One of the best things about trading in Canada: Interac e-Transfer deposits are instant and free on most platforms, making it one of the most convenient markets to get started.
**Staying Safe as a Trader in Canada**
- Use FINTRAC-registered MSBs for baseline regulatory protection
- Check for provincial securities registration as well, since many Canadian exchanges are also registered with the OSC or AMF for extra oversight
- Interac e-Transfer is the safest and fastest way to deposit Canadian dollars
- Keep records of all transactions including your adjusted cost base (ACB) for tax reporting
- Canada has an extensive crypto ATM network, but ATM fees are steep at 5-10%. You are almost always better off using an exchange
**What Sets These Exchanges Apart**
Shakepay has a fun "Shaking Sats" feature that gives you free Bitcoin just for shaking your phone in the app each day. Wealthsimple Crypto integrates with Wealthsimple's investing and banking products, giving you a unified view of all your finances. Bitbuy Pro offers institutional-grade spreads for serious traders. For tax season, Canadian tools like Koinly and Wealthsimple Tax integrate directly with exchange APIs to automate your reporting.
**What You Need to Know About Taxes**
Canada treats crypto as a commodity. Only 50% of your capital gains are included in taxable income, which effectively means you pay tax at half your marginal rate. If crypto trading is your primary business, though, 100% of gains become taxable as business income. The CRA requires detailed reporting of every crypto sale or trade. Mining income is taxed as business income.
Crypto Regulations in Canada
Canada regulates crypto exchanges through the Canadian Securities Administrators (CSA) and provincial securities commissions. Exchanges must register as Restricted Dealers or Investment Dealers. Crypto is treated as a commodity for tax purposes - 50% of capital gains are taxable. FINTRAC oversees AML/KYC compliance. Canada has one of the most well-defined crypto regulatory frameworks globally.
Frequently Asked Questions
Is crypto legal in Canada?
Yes. Crypto exchanges are regulated as Money Service Businesses by FINTRAC. Many are also registered with provincial securities regulators.
How is crypto taxed in Canada?
50% of capital gains are included in taxable income. Business traders pay tax on 100% of gains. The CRA requires detailed reporting.
What is the best crypto exchange in Canada?
Shakepay is the simplest for beginners. Bitbuy Pro offers the lowest trading fees. Kraken provides the deepest liquidity for CAD pairs.
Can I use Interac e-Transfer for crypto?
Yes. Interac e-Transfer is the most popular funding method on Canadian exchanges. It's instant and free on most platforms.
Does Canada have a Bitcoin ETF?
Yes. Canada was the first to approve Bitcoin and Ethereum ETFs. Purpose Bitcoin ETF and CI Galaxy Bitcoin ETF are available on the TSX.