Best Crypto Exchanges in Canada
Get insights on the best crypto exchanges in Canada, offering top-tier security and adherence to strict local regulations.
Summary: Canada’s cryptocurrency market thrives due to the strict oversight by the Canadian Securities Administrators (CSA), creating a secure and efficient trading environment. Investors enjoy a variety of payment methods including Interac e-Transfers and direct bank deposits, facilitating easy CAD transactions. This enhances the ease of buying, holding, and trading cryptocurrencies in a regulated setting.
After thorough research, our analysts have identified the top five crypto trading apps in Canada, each offering unique features suitable for different investors and traders. These platforms include:
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Best Cryptocurrency Exchanges in Canada
After carefully reviewing over 20 platforms, our team has selected the top five exchanges ideal for Canadian investors. Our analysis emphasized adherence to regulations set by the Canadian Securities Administrators (CSA), diversity of cryptocurrencies offered, user friendliness, Canadian Dollar (CAD) deposit methods, and fee structures. These picks serve as a valuable guide for investors looking for an exchange that meets their specific needs.
1. Kraken
Kraken ranks as the most frequented cryptocurrency exchange in Canada, effectively catering to a diverse clientele ranging from individual enthusiasts to large institutions. The platform stands out with a quarterly trading volume surpassing $207 billion, indicating its significant presence in the Canadian market. Kraken offers a broad array of trading and staking options, with a focus on major cryptocurrencies like Bitcoin, Ethereum, Solana, and over 250 altcoins.
Canadian investors praise Kraken for its superior user interface and the accessibility of its mobile app on both the App Store and Google Play. The exchange is also popular for its lucrative staking options, with annual returns of up to 25% (APY). For more seasoned and institutional traders, Kraken Pro provides advantages such as competitive pricing, substantial liquidity, and high deposit limits, reinforcing Kraken’s position as a leading exchange.
- Fees: Maker fees are 0.01% and Taker fees are 0.02%.
- Supported Assets: Offers over 250 spot markets and more than 100 margin trading markets.
- Regulation & Licensing: Complies rigorously with Canadian financial regulations, ensuring smooth CAD banking transactions.
- CAD Deposit Methods: Includes Interac e-Transfer, Electronic Funds Transfer (EFT), SWIFT, Bank Transfers, and Credit and Debit Cards.
2. Bitbuy
Based in Toronto, Bitbuy stands out as a top-tier cryptocurrency exchange in Canada due to its staunch compliance with financial regulations from the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and the Ontario Securities Commission. The platform offers access to over 29 leading cryptocurrencies and maintains competitive transaction fees within the industry.
Bitbuy also attracts users with its cryptocurrency staking options, boasting an annual percentage yield (APY) of up to 6.51%. Its strong regulatory adherence, diverse cryptocurrency offerings, reasonable transaction fees, and lucrative investment opportunities consolidate its position as a distinguished player in the Canadian market.
- Fees: No charge for CAD deposits, with variable fees averaging at 1%.
- Supported Assets: Features 25 cryptocurrencies.
- Regulation & Licensing: Registered with the Ontario Securities Commission, Canadian Securities Administrators, and recognized by FINTRAC as a money services business.
- CAD Deposit Methods: Includes Wire Transfer, Credit Card, Debit Card, and Interac e-Transfer.
3. Uphold
Uphold distinguishes itself as a leading multi-asset brokerage platform, securing the third spot among exchanges in Canada. The platform supports trading across five asset classes, including cryptocurrencies, stocks, commodities, fiat currencies, and environmental assets. Notably, it’s among the few exchanges globally to offer audited proof-of-reserves, ensuring a 1:1 backing of customer assets.
Uphold also provides staking options for 23 different tokens, with potential annual percentage yields reaching up to 25%. However, it’s important to note that Uphold does not accept direct CAD bank deposits, limiting transactions to debit cards, credit cards, Google Pay, and Apple Pay. Consequently, CAD withdrawals to bank accounts are also not supported.
- Fees: Deposits are free across all methods, except for cards which incur a 2.49% fee. Crypto trading fees range from 0.8% to 1.2%.
- Supported Assets: Includes 260 cryptocurrencies, 40 shares, 4 precious metals, and 27 fiat currencies.
- Regulation & Licensing: Fully regulated and licensed in Canada.
- CAD Deposit Methods: Credit/Debit Cards, Google Pay, and Apple Pay.
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4. Bybit
Ranking as the fourth best digital asset exchange in Canada, Bybit is renowned for its extensive array of over 1,000 crypto assets, derivatives trading capabilities, sophisticated trading tools, and varied order types. Its platform is user-friendly, providing instant transactions, competitive fees, and complimentary CAD deposits through Interac e-Transfer and bank transfers.
Bybit excels in derivatives and futures trading because of its robust liquidity and impressive leverage options of up to 25x. The exchange also offers staking services and cryptocurrency loans, enabling users to lend, borrow, and generate returns. Driven by innovation and a dedication to user satisfaction, Bybit consistently reinforces its position as a prominent figure in Canada's cryptocurrency landscape.
- Fees: Free deposits and withdrawals; spot market transactions incur a fee of 0.1%, with a maker/taker rebate of 0.01%/0.06%.
- Supported Assets: Over 1,000 cryptocurrencies.
- Regulation & Licensing: Not regulated in Canada, yet accessible to Canadian investors.
- CAD Deposit Methods: Interac e-transfer, Credit Card, and Debit Card.
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5. Shakepay
Rounding out our top five list is Shakepay, a Montreal-based exchange that caters only to investors in Canada. The platform allows users to easily buy and sell Bitcoin and Ethereum without commission, managing over $10 billion in transactions and serving over a million Canadians since its inception in 2015.
Shakepay introduces an innovative feature, ShakingSats, that rewards users with free Bitcoin daily just for shaking their mobile device after making a transaction. This engages users daily and promotes consistent interaction with the app. Additionally, Shakepay offers practical everyday financial services, such as the ability to pay bills directly through the app, with popular payees including Rogers Mobility and Manulife Financial Corp.
- Fees: No fees for buying, selling, or transferring funds, Shakepay generates revenue through the spread on currency exchanges (1%).
- Supported Assets: Offers Bitcoin and Ethereum only.
- Regulation & Licensing: Fully compliant as a Money Service Business registered with FINTRAC and recognized as a Restricted Dealer in all Canadian provinces and territories.
- CAD Deposit Methods: Includes Interac e-Transfer, wire transfer, and direct deposit, ensuring a seamless financial experience.
Is Crypto Regulated in Canada?
Yes, cryptocurrency is regulated in Canada through a combination of provincial and federal oversight. At the provincial level, the regulation mainly involves securities and derivatives guidelines directed by the Canadian Securities Administrators (CSA). These guidelines extend traditional securities regulations to encompass cryptocurrencies, though they do not prescribe specific rules solely for digital assets.
On the federal front, regulations primarily focus on anti-money laundering (AML) measures. Entities dealing in certain virtual currency transactions must register as Money Services Businesses (MSBs) according to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). Both local and international MSBs are mandated to establish extensive compliance programs. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) manages these regulations, with special attention to virtual currency exchanges.
In summary, Canada's approach to cryptocurrency regulation is comprehensive and multi-tiered, integrating securities oversight with strict AML policies and applying them broadly across cryptocurrency-related operations to ensure a robust regulatory framework.
How is Crypto Taxed in Canada?
In Canada, cryptocurrency is taxed based on guidelines from the Canada Revenue Agency (CRA), which treats virtual currencies as commodities. This means that cryptocurrency transactions can trigger capital gains or losses, or be treated as income, subject to how the transaction is categorized. For capital gains transactions, only 50% of the gain is taxable, and similarly, 50% of any capital loss is deductible, following the provisions of the Income Tax Act.
For transactions deemed as income, the gains are taxed as ordinary income, and losses can typically be deducted. The CRA stresses the necessity of keeping detailed financial records of all cryptocurrency transactions, including purchases, sales, and mining, to meet tax obligations effectively.
Bottom Line
In conclusion, Canada's cryptocurrency environment is robust and tightly regulated, benefiting from detailed oversight at both provincial and federal levels. This regulation ensures a secure and compliant trading environment for a variety of transaction types. For compliance, precise record-keeping is essential, especially with the CRA's specific taxation requirements on transactions classified as capital gains or income.
Investors have access to top exchanges such as Kraken, Bitbuy, Uphold, Bybit, and Shakepay, each offering unique features that meet diverse user needs while adhering to these stringent regulations. These platforms provide a secure, convenient, and innovative financial landscape for trading cryptocurrencies in Canada.
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