Best Crypto Exchanges in Canada

Best Cryptocurrency Exchanges in Canada

After reviewing over 20 platforms, our team identified the top five exchanges for Canadian investors. We focused on compliance with Canadian Securities Administrators (CSA) regulations, the variety of cryptocurrencies, ease of use, CAD deposit options, and fee structures. These choices offer a guide for investors seeking an exchange that meets their specific needs.

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1. Kraken

Kraken stands out as the top cryptocurrency exchange in Canada, catering to a wide range of users from individual traders to large institutions. With a quarterly trading volume exceeding $207 billion, Kraken's significant market presence is clear. The platform offers an extensive range of trading and staking options, supporting major cryptocurrencies like Bitcoin, Ethereum, Solana, and over 250 altcoins.

Kraken is praised by Canadian investors for its intuitive user interface and accessible mobile app available on both the App Store and Google Play. The exchange is also well-known for its competitive staking options, offering annual returns up to 25% (APY). For more experienced and institutional traders, Kraken Pro provides benefits such as low fees, high liquidity, and substantial deposit limits.

• Fees: Maker fees are 0.01%, and Taker fees are 0.02%.
• ‍Supported Assets: Over 250 spot markets and more than 100 margin trading markets.
• ‍Regulation & Licensing: Registered as a Money Services Business with FINTRAC (Payward Canada, Inc., MSB Registration No. M19343731), ensuring smooth CAD banking transactions.
• ‍CAD Deposit Methods: Interac e-Transfer, Electronic Funds Transfer (EFT), SWIFT, Bank Transfers, and Credit/Debit Cards.

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2. Bitbuy

Based in Toronto, Bitbuy is a leading cryptocurrency exchange in Canada, renowned for its strict compliance with FINTRAC and the Ontario Securities Commission. The platform offers access to over 50 cryptocurrencies and maintains competitive transaction fees. Bitbuy ensures security with 90% of crypto assets stored in cold storage and covered by a comprehensive insurance policy, along with cash holdings insured up to $1M per account.

Bitbuy's strong regulatory adherence, transparent fee structure, and staking options with an APY of up to 11.23% make it a trusted choice for both beginners and advanced traders. The platform also supports private wealth management and corporate solutions, catering to diverse trading needs.

• ‍Fees: No charge for CAD deposits, with variable fees averaging 1%.
• ‍Supported Assets: 50 cryptocurrencies.
• ‍Regulation & Licensing: Registered with the Ontario Securities Commission and FINTRAC (Money Services Business).
• ‍CAD Deposit Methods: Wire Transfer, Credit Card, Debit Card, and Interac e-Transfer.

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3. Uphold

Uphold is a top multi-asset brokerage platform in Canada, supporting over 250 cryptocurrencies and precious metals like gold and silver. The platform is notable for its audited proof-of-reserves, ensuring a 1:1 backing of customer assets. It offers staking options for 23 tokens with annual yields up to 25%, and prioritizes transparency and security by never lending out customer funds and maintaining full reserves.

For institutional investors, Uphold provides advanced trading tools, deeper liquidity, and superior coverage through connections to over 30 trading venues, including centralized and decentralized exchanges. However, Uphold does not support direct CAD bank deposits or withdrawals, limiting transactions to credit/debit cards, Google Pay, and Apple Pay.

• Fees: No charge for deposits except for cards, which incur a 2.49% fee. Crypto trading fees range from 0.8% to 1.2%.
• Supported Assets: Over 250 cryptocurrencies and several precious metals.
• Regulation & Licensing: Fully regulated in Canada.
• CAD Deposit Methods: Credit/Debit Cards, Google Pay, and Apple Pay.

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4. Bybit

Bybit is the top choice for crypto futures trading in Canada, offering a highly advanced derivatives platform with access to over 1,200 cryptocurrencies. The platform provides instant transactions, competitive fees, and free CAD deposits via Interac e-Transfer and bank transfers. Bybit is renowned for its robust liquidity and leverage options up to 25x, making it ideal for futures trading. It also offers staking services and cryptocurrency loans for lending and borrowing.

For institutional investors, Bybit offers advanced trading tools and varied order types, reinforcing its status as a prominent player in the Canadian cryptocurrency market. However, Bybit is not regulated in Canada, though it remains accessible to Canadian investors.

• ‍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 1,200 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 dedicated exclusively to Canadian investors. Shakepay allows users to buy and sell Bitcoin and Ethereum without commission, having managed over $10 billion in transactions and serving over a million Canadians since 2015.

Shakepay's innovative ShakingSats feature rewards users with free Bitcoin daily for shaking their mobile device after a transaction, promoting consistent app interaction. Additionally, Shakepay offers practical financial services such as bill payments directly through the app, supporting popular payees like 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: Bitcoin and Ethereum only.‍
• Regulation & Licensing: Fully compliant as a Money Services Business registered with FINTRAC and recognized as a Restricted Dealer in all Canadian provinces and territories.‍
• CAD Deposit Methods: Interac e-Transfer, wire transfer, and direct deposit.

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Is Crypto Regulated in Canada?

Yes, cryptocurrency is regulated in Canada through both provincial and federal oversight. Provincially, the Canadian Securities Administrators (CSA) extend traditional securities regulations to include cryptocurrencies, focusing on securities and derivatives guidelines. While specific rules for digital assets aren't prescribed, they are covered within existing securities regulations.

Federally, regulations target anti-money laundering (AML) measures. Entities involved in certain virtual currency transactions must register as Money Services Businesses (MSBs) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). Both local and international MSBs must establish comprehensive compliance programs. These regulations are managed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), which focuses on virtual currency exchanges.

In summary, Canada's approach to cryptocurrency regulation combines securities oversight with stringent AML policies to ensure comprehensive regulation across all cryptocurrency-related activities.

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How is Crypto Taxed in Canada?

In Canada, cryptocurrency is taxed according to guidelines from the Canada Revenue Agency (CRA), which classifies virtual currencies as commodities. This means that cryptocurrency transactions can result in capital gains or losses, or be treated as income, depending on the nature of the transaction. For capital gains, 50% of the gain is taxable, while 50% of any capital loss is deductible under the Income Tax Act.

For transactions categorized as income, the gains are taxed as ordinary income, and losses can be deducted. The CRA emphasizes maintaining detailed records of all cryptocurrency transactions, including purchases, sales, and mining activities, to ensure accurate tax reporting and compliance.

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How to Buy Bitcoin in Canada

If you're new to cryptocurrency investment in Canada, here's a simple guide on purchasing Bitcoin through a digital asset exchange:

1. ‍Create an Account: Visit a reputable exchange and sign up. Complete the verification process by providing a photo ID and, if necessary, proof of address.‍
2. Deposit Canadian Dollars (CAD): Go to the deposit section, select CAD, and enter the amount to transfer. Complete the transaction using Interac e-Transfer, bank transfer, or credit card.‍
3. Choose Bitcoin: Search for Bitcoin (BTC) in the trading section. Select the CAD/BTC trading pair to view the current market rate. Review available trading options, such as market and limit orders.‍
4. Execute the Trade: Click 'buy' or 'trade' to purchase Bitcoin. Enter the amount of Bitcoin or CAD you wish to spend. Review order details, including price and fees, then finalize the trade.

This guide provides Canadians with a clear path to start their Bitcoin investment journey, from account creation to executing trades.

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Bottom Line

In conclusion, Canada’s cryptocurrency market offers a secure environment for investors due to strict regulations by the Canadian Securities Administrators (CSA) and FINTRAC.

Our analysis of the top five crypto exchanges, Kraken, Bitbuy, Uphold, Bybit, and Shakepay, highlights their unique features and suitability for different investors. With strong regulatory compliance, user-friendly platforms, and diverse asset offerings, these exchanges provide excellent options for buying, holding, staking, and trading cryptocurrencies in Canada.