Best Crypto Exchanges in Canada

Best Cryptocurrency Exchanges in Canada

We tested the 19 crypto exchanges available to Canadians to determine the leading options complying with the CSA and FINTRAC regulations. Our evaluation focused on available CAD deposit options, overall investment costs, cryptocurrency selection, features and user experience. Below is a detailed comparison of the five best platforms in Canada.

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1. Kraken

Kraken is the top crypto exchange in Canada, providing a comprehensive suite of trading options, including spot, futures, and margin trading with leverage up to 5x. Operating under Payward Canada Inc, it has filed PRU with the CSA and is legally allowed to offer services. It supports over 290 cryptocurrencies and more than 100 derivatives contracts for trading. 

It provides features like the Kraken Pro interface, which delivers a rich set of trading tools, order types, and real-time market data. Investors can also earn up to 28% APY on holdings through 25+ staking assets. There are also dedicated services for institutional clients, such as high-volume trading support, OTC trading, and personal account management for professional portfolios. 

• Fees: Maker fees are 0.16%, and taker fees are 0.26%.
• ‍Supported Assets: Over 290 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).
• ‍CAD Deposit Methods: Interac e-Transfer, Electronic Funds Transfer (EFT), SWIFT, bank transfers, cash (Canada Post) and credit or debit Cards.

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2. Bitbuy

Bitbuy is a leading Canadian cryptocurrency exchange based in Toronto. It operates under Bitbuy Technologies Inc and has received full approval from the CSA. The platform provides two main trading interfaces: Express Trade for quick transactions and Pro Trade for advanced users seeking detailed charting tools. It supports a diverse selection of 57 cryptocurrencies for spot trading.

Committed to security and regulatory compliance, Bitbuy is registered with the CSA and ensures security with 90% of crypto assets stored in cold storage and covered by an insurance policy, along with cash holdings insured up to $1M per account. It also provides staking services offering up to 12% APY and provides dedicated support through its Private Wealth (OTC) service.

• ‍Fees: 1% when using Express Trade and 0.1% maker and 0.2% taker fees on Pro Trade.
• ‍Supported Assets: 57 cryptocurrencies.
• ‍Regulation & Licensing: Operating under Bitbuy Technologies Inc and authorized by the CSA.
• ‍CAD Deposit Methods: Wire transfer, credit card, debit card, and Interac e-Transfer.

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3. Uphold

Uphold is a trading platform that enables Canadians to engage with multiple assets, including over 300 cryptocurrencies, 4 precious metals, and 27 traditional currencies. The exchange has filed for PRU with the CSA and can offer services to investors in Canada. It was the first platform to make its reserve holdings completely transparent, ensuring a 1:1 backing of customer funds.

Security is a cornerstone of Uphold's operations, with measures such as SOC 2 Type 2, ISO 27001, and PCI DSS certifications ensuring rigorous control over information security management systems. It offers staking options for 23 tokens with annual yields of up to 25%. Additionally, its commitment to compliance is evident through its adherence to the PIPEDA act.

• Fees: Crypto trading fees range from 0.8% to 1.2%, depending on the asset.
• Supported Assets: Over 300 cryptocurrencies, 4 commodities and 27 fiat currencies.
• Regulation & Licensing: Registered with FINTRAC and filed for PRU under Uphold Worldwide Ltd with CSA.
• CAD Deposit Methods: Credit cards, debit cards, bank transfers, Google Pay, and Apple Pay.

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4. Coinbase

Coinbase is one of the largest exchanges in the world, serving over 110 million registered users. It has received full approval from the CSA and facilitates multiple CAD deposit methods. There are over 240 cryptocurrencies for spot trading and more than 100 margin contracts. In addition to trading, users can stake 150 digital assets with yields ranging between 1.8% - 23.4% APY.

For institutions, Coinbase offers specialized services such as Coinbase Prime, which includes advanced trading capabilities and custody solutions with insurance coverage. The platform takes security seriously, employing measures like 2FA, biometric logins, and cold storage. There is the Coinbase Card, a Visa prepaid debit card that turns your everyday purchases into crypto rewards.

• Fees: Retail fees start at 0.5%; Coinbase Pro offers a tiered fee structure with lower rates for higher volumes.
• Supported Assets: Over 240 cryptocurrencies.
• Regulation & Licensing: Registered with the Canadian Securities Administrators (CSA) and compliant with FINTRAC guidelines.
• CAD Deposit Methods: Interac e-Transfer, wire transfer, and credit or debit card.

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5. Shakepay

Shakepay is a Canadian crypto platform based in Montreal that enables users to buy, sell, and manage Bitcoin and Ethereum. It has received approval from the CSA and legally operates in the country as a money services business with FINTRAC. The user-friendly mobile app facilitates quick account setup and instant funding through Interac e-Transfer.

Beyond trading, Shakepay provides unique features to enhance user engagement and rewards. The "ShakingSats" program allows users to earn free Bitcoin daily by simply shaking their phones, promoting consistent interaction with the app. Additionally, the Shakepay Visa Prepaid Card offers up to 2% Bitcoin cashback on purchases, enabling users to earn cryptocurrency.

• Fees: Commission-free trading; revenue is generated through the bid-ask spread.
• Supported Assets: Bitcoin (BTC) and Ethereum (ETH).
• Regulation & Licensing: Registered as a Money Service Business by FINTRAC and as a Restricted Dealer in all Canadian provinces and territories.
• CAD Deposit Methods: Interac e-Transfer and wire transfer.

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Is Crypto Regulated in Canada?

Cryptocurrency is overseen by the Canadian Securities Administrators (CSA) and the Financial Transactions and Reports Analysis Centre (FINTRAC). The CSA requires all trading platforms operating in the country to register and comply with specific conditions. Investors must use options that are listed on either the approved trading platforms or exchanges with PRU lists.

FINTRAC enforces compliance with anti-money laundering (AML) and Know Your Customer (KYC) protocols, mandating that exchanges and custodial wallet providers register as money services businesses and adhere to stringent regulations. In September 2024, the CSA provided an update to crypto asset trading platforms regarding value-referenced crypto assets (VRCAs).

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How is Crypto Taxed in Canada?

‍In Canada, the Canada Revenue Agency (CRA) classifies cryptocurrency as a commodity, subjecting transactions to taxation as either business income or capital gains, depending on the nature of the activity. 

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Capital Gains Taxation

When you dispose of cryptocurrency by selling it, trading it, or using it to buy goods or services, you may have a capital gain or loss. This is calculated by subtracting the original purchase price (adjusted cost base) from the sale amount. In Canada, only 50% of capital gains are taxable.

Example:

• Purchased 1 Bitcoin (BTC) for CAD 10,000 and sold 1 BTC for CAD 15,000.
• Capital gain: CAD 15,000 - CAD 10,000 = CAD 5,000.
• Taxable capital gain: 50% of CAD 5,000 = CAD 2,500.

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Income Taxation

If your cryptocurrency activities are considered business income, such as frequent trading, mining, or earning crypto through staking or as payment for goods and services, the full amount is taxable. The CRA assesses whether activities constitute a business based on factors like commercial intent, promotion of a product or service, and the frequency of transactions.

Example:

• Received 0.5 BTC as payment for services when 1 BTC was valued at CAD 20,000.
• Income reported: 0.5 BTC × CAD 20,000 = CAD 10,000. Investors will need to pay somewhere between 15% - 33% on 100% of the crypto earnings.

Canada employs a progressive tax system with both federal and provincial rates. The CRA recommends maintaining detailed information, including dates, amounts, fair market values at the time of transactions, and the purpose of each transaction. This documentation supports accurate reporting and compliance. 

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How to Buy Bitcoin in Canada

Canadian investors can purchase Bitcoin through exchanges that support CAD deposits and comply with regulations set by the Canadian Securities Administrators (CSA) and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Below is a quick summary of the BTC investment process:

1. Select a Reputable Exchange: Choose a platform within Canada that is listed on the CSA-approved exchanges list. Ensure the platform supports CAD deposits from local accounts.
2. Create an Account: Sign up by providing the necessary information, such as your name, email address, and a secure password. Complete the identity verification process, which involves submitting government-issued identification and proof of address.
3. Deposit Canadian Dollars (CAD): Navigate to the platform’s deposit section, select your preferred payment method and enter the amount of CAD you wish to deposit. Follow the instructions provided by the exchange to complete the transaction.
4. Locate Bitcoin (BTC): Once your account is funded, go to the trading or markets section of the platform. Search for "BTC" to find Bitcoin and select the CAD/BTC trading pair.
5. Execute the Purchase: Decide on the amount of Bitcoin you want to buy or the amount of CAD you wish to spend. Review the transaction details carefully, including any fees, and confirm the purchase.

By following these steps, Canadian investors can buy Bitcoin while ensuring compliance with local and national standards.

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Bottom Line

Selecting the right crypto exchange in Canada hinges on your trading goals and investment approach. It's essential to choose platforms that adhere to Canadian regulations to ensure compliance. Top choices include Kraken, Bitbuy, Uphold, Coinbase, and Shakepay, which are all approved by the CSA.

These platforms offer a range of features, from user-friendly interfaces and advanced trading tools to diverse asset selections.