Is Crypto Legal in Canada?

FINTRAC — AML/CFT, MSB registration, transaction reporting

CSA — coordinates provincial and territorial securities regulation of crypto trading platforms through CSA Staff Notice 21-327 (16 January 2020) on when securities law applies, Joint CSA/IIROC Staff Notice 21-329 (29 March 2021) on compliance, and the 6 August 2024 expectation that platforms register as investment dealers and become CIRO members.

CSA Staff Notice 21-327 (16 January 2020) sets out when securities legislation applies to crypto trading platforms; the compliance and registration framework followed in Joint CSA/IIROC Staff Notice 21-329 (29 March 2021), the day the OSC told platforms to start registration or face enforcement action, and the OSC began proceedings against a non-compliant offshore platform on 25 May 2021.

VASP: a crypto platform serving Canadians registers with FINTRAC as a money services business (or foreign MSB) for dealing in virtual currency and, for crypto contracts, with the securities regulators, which since 6 August 2024 expect investment dealer registration and CIRO membership rather than restricted dealer status; Binance, whose principal regulator was the Alberta Securities Commission, announced on 12 May 2023 that it would withdraw from Canada.

CUSTODY: Under the standard pre-registration undertaking in CSA Staff Notice 21-332 (22 February 2023), a crypto trading platform holds client crypto assets in trust for clients, separate from its own assets, with an Acceptable Third-party Custodian (such as a Canadian custodian or Canadian financial institution, or another custodian meeting the notice's criteria or consented to by the regulator), and keeps at least 80% of the value of client crypto assets with third-party custodians.

EXCHANGE: A crypto exchange serving Canadians registers with FINTRAC as a money services business (or foreign MSB) for dealing in virtual currency and, where it trades crypto contracts, with the securities regulators; since 6 August 2024 the CSA expects such platforms to register as investment dealers and join CIRO, and no longer grants time-limited restricted dealer registration or accepts new pre-registration undertakings.

FINTRAC is Canada's financial intelligence unit and anti-money laundering and anti-terrorist financing supervisor; it does not license crypto businesses but registers money services businesses, including virtual currency dealers, under PCMLTFA s. 11.1.

Individuals must register if they trade, advise or underwrite on behalf of a registered dealer or adviser, or act as the ultimate designated person or chief compliance officer of a registered firm; an individual's registration must be sponsored by a registered firm and may be sought in more than one province or territory.

Registration authority rests with each provincial or territorial securities regulator; restricted-dealer applicants apply separately to each regulator, and the OSC registers crypto trading platforms for Ontario through its own decisions, with Cybrid Canada registered for Ontario only as of 25 September 2026.

Since 1 April 2025 the Ontario Securities Commission has delegated to CIRO the registration function for firms registered as investment dealers, mutual fund dealers and futures commission merchants and the individuals acting for them, while the OSC retains concurrent authority over the delegated powers.

CSA members coordinate registration through the passport system (Multilateral Instrument 11-102) and, with Ontario, the interface system: a firm registering in several provinces or territories files through the passport and interface system, except restricted dealers, which apply separately to each regulator.

Anyone in the business of trading securities or advising clients on securities must be registered with the securities regulator in each province or territory where they do business, unless an exemption applies

Registration framework is established through National Instrument 31-103 (NI 31-103) — Registration Requirements, Exemptions and Ongoing Registrant Obligations

Registration forms and filing requirements are governed by National Instrument 33-109 Registration Information; firms apply on Form 33-109F6 Firm Registration and individuals on Form 33-109F4 Registration of Individuals and Review of Permitted Individuals.

The category of registration determines what products and services a firm or individual can offer (for example, mutual fund dealing representatives can only sell mutual funds)

NI 31-103 s. 12.1 requires a registered firm's excess working capital (Form 31-103F1) not to fall below zero for 2 consecutive days, with minimum capital of $25,000 for an adviser, $50,000 for a dealer and $100,000 for an investment fund manager; dealers must also maintain bonding or insurance (s. 12.3). Investment dealers that are CIRO (formerly IIROC) members are exempt from ss. 12.1 and 12.3 under s. 9.3(1) unless also registered as investment fund managers.

Under NI 31-103 s. 11.3(1) every registered firm must designate an individual registered in the category of chief compliance officer; the Exempt Market Products Exam is a proficiency option only for an exempt market dealer's CCO (s. 3.10), alongside the PDO or Chief Compliance Officers Qualifying Exam and 12 months of relevant experience.

NI 31-103 sets CCO experience by registration category rather than a general 3-5 year expectation: an exempt market dealer's CCO needs 12 months of relevant securities industry experience in the prior 36 months plus specified exams (s. 3.10), and every registered firm must let its CCO directly access its board of directors (s. 11.4).

OSC registration assessment rests on three principles: proficiency under Part 3 of NI 31-103, integrity, and solvency through capital and insurance requirements; firms file Form 33-109F6 with audited financial statements and insurance declarations, and OSC staff may request other information to assess fitness for registration.

CSA Staff Notice 21-327, Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets (16 January 2020), states that a platform is generally not subject to securities legislation only if the underlying crypto asset is not a security or derivative and each contract results in, and is settled by, immediate delivery of the crypto asset to the user.

Canadian Securities Administrators (CSA): The umbrella organization coordinating provincial and territorial securities regulators, issuing national guidance for crypto asset trading platforms.

Provincial and territorial securities regulators register crypto trading platforms through registration and exemptive-relief decisions; the OSC lists 14 platforms registered for Ontario (25 September 2026), and under Joint CSA/IIROC Staff Notice 21-329 (29 March 2021) platforms in Québec trading crypto contracts that are derivatives must register as derivatives dealers under the Québec Derivatives Act.

Financial Transactions and Reports Analysis Centre of Canada (FINTRAC): Canada's financial intelligence unit and anti-money laundering and anti-terrorist financing supervisor; persons dealing in virtual currencies are money services businesses under PCMLTFA s. 5(h)(iv), or s. 5(h.1) for foreign businesses directing services at Canada, and must register with FINTRAC under s. 11.1, an obligation in force for virtual currency dealers since 1 June 2020.

Canada Revenue Agency (CRA): administers income tax and GST/HST on crypto-asset transactions; its crypto-asset guide (modified 10 November 2025) describes crypto-assets as digital representations of value relying on cryptographically secured distributed ledgers and treats receiving crypto-assets for goods or services as a barter transaction.

Canadian Investment Regulatory Organization (CIRO): the national self-regulatory organization overseeing all investment dealers, mutual fund dealers and trading activity on Canada's debt and equity marketplaces; since the joint CSA/CIRO release of 6 August 2024, crypto trading platforms are expected to register as investment dealers and become CIRO members.

Bank of Canada: designated to register and supervise stablecoin issuers under the Stablecoin Act, enacted by Bill C-15 (Budget 2025 Implementation Act, No. 1, S.C. 2026, c. 3; Royal Assent 26 March 2026); s. 16 requires the Bank to keep a public registry of issuers, and s. 97 brings the Act into force on days fixed by order of the Governor in Council.

Crypto trading platforms accessible to Canadians, including platforms located outside Canada, are regarded as operating in Canada for securities purposes (CSA, 12 December 2022) and must register with the provincial or territorial securities regulators; the OSC has acted against unregistered offshore platforms since 25 May 2021.

Money services business registration: crypto exchanges dealing in virtual currency must register with FINTRAC before operating as a money services business or foreign money services business, and must file Suspicious Transaction Reports and Large Virtual Currency Transaction Reports when they receive virtual currency worth CAD 10,000 or more in a single transaction, within 5 working days.

Virtual currency exchange and transfer businesses must register with FINTRAC before operating: as an MSB if they have a place of business in Canada, or as a foreign MSB if they have none but direct and provide services to clients in Canada. Registration is valid for two years and must be renewed before expiry.

Provincial securities registration applies to crypto trading platforms that trade crypto assets that are securities or derivatives, or contracts for crypto assets that do not result in immediate delivery (crypto contracts), under CSA Staff Notice 21-327 (16 January 2020) and Joint CSA/IIROC Staff Notice 21-329 (29 March 2021); CSA/IIROC Consultation Paper 21-402 (14 March 2019) was a proposal and CSA Staff Notice 46-307 (24 August 2017) addresses cryptocurrency offerings.

No single federal crypto licence exists in Canada: crypto trading platforms are registered by provincial and territorial securities regulators coordinated through the CSA, virtual currency dealers register with FINTRAC as money services businesses, the Bank of Canada supervises payment service providers under the Retail Payment Activities Act (risk-management and safeguarding duties since 8 September 2025), and the Stablecoin Act (S.C. 2026, c. 3) adds Bank of Canada registration of stablecoin issuers once brought into force.

A money services business or foreign money services business must register with FINTRAC before operating and must implement a compliance program (compliance officer, policies and procedures, risk assessment, training program, effectiveness review) and verify client identity; a foreign MSB is one with no place of business in Canada that directs services at, and provides them to, persons or entities in Canada.

FINTRAC MSB registration starts with a pre-registration form, then a registration form with bank account, compliance officer, owner and senior management details, estimated annual transaction volumes and locations, plus criminal record checks for the CEO, president, directors and anyone owning or controlling 20% or more.

FINTRAC processes most complete MSB registration applications within three months, then issues an approval notice and registration number, a clarification request, or reasons for denial; registration is valid for two years and must be renewed before expiry.

Securities path: on 6 August 2024 the CSA ended time-limited restricted dealer registration for crypto trading platforms and stopped accepting new pre-registration undertakings; new platforms apply directly to CIRO for investment dealer registration and membership.

The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (S.C. 2000, c. 17) covers persons dealing in virtual currencies as MSBs (s. 5(h)(iv)) or foreign MSBs (s. 5(h.1)(iv)) and requires them to register with FINTRAC (s. 11.1).

The Ontario Securities Commission's list of registered crypto asset trading platforms (updated 25 September 2026) names 14 entities: 7 investment dealers (Coinsquare/Bitbuy, Fidelity Clearing Canada, Ndax, Newton, Shakepay, Wealthsimple Investments, Webull Canada Crypto), 6 restricted dealers (Coinbase Canada, Cybrid Canada, Crypto.com, Netcoins, Kraken, Satstreet) and Fidelity Digital Asset Services as an exempt marketplace and clearing agency.

Under CSA Staff Notice 21-332 (22 Feb 2023) unregistered crypto asset trading platforms could give a pre-registration undertaking (PRU) to their principal regulator while applying for registration. On 6 Aug 2024 the CSA ended that interim approach for time-limited restricted dealer registration, including new PRUs; new platforms apply directly to the Canadian Investment Regulatory Organization (CIRO). PRUs of ByteX, CatalX and Uphold expired or were withdrawn in 2023.

On 22 Jun 2022 a panel of the Capital Markets Tribunal approved a settlement between the Ontario Securities Commission and Bybit Fintech Limited (British Virgin Islands) for operating an unregistered crypto asset trading platform; Bybit disgorged USD 2,468,910, paid CAD 10,000 toward investigation costs, and gave an undertaking not to open new Ontario accounts or offer new products while registration discussions continue, and to wind up its Ontario operations if they fail.

On 22 Jun 2022 a panel of the Capital Markets Tribunal permanently banned Mek Global Limited (Seychelles) and PhoenixFin Pte. Ltd. (Singapore), together KuCoin, from participating in Ontario's capital markets and ordered an administrative penalty of CAD 2,000,000 plus $96,550.35 in OSC investigation costs for operating an unregistered crypto asset trading platform. Separately, FINTRAC imposed an administrative monetary penalty of $19,552,000 on Peken Global Limited (operating as KuCoin) on 28 Jul 2025 for 3 violations, which Peken has appealed.

On 17 Mar 2022 the Ontario Securities Commission published an undertaking by Binance Holdings Limited and Binance Canada Capital Markets Inc. confirming that activities involving Ontario residents had ceased, after Binance falsely told investors on 29 Dec 2021 that it could keep operating in Ontario. Binance told the Alberta Securities Commission (principal regulator for the CSA) on 2 May 2023 that it would withdraw from Canada and announced the exit publicly on 12 May 2023. FINTRAC imposed an administrative monetary penalty of $6,002,000 on Binance Holdings Limited, as a foreign money services business, on 7 May 2024 for 2 violations; Binance appealed to the Federal Court.