Canada Cracks Down on Crypto: Rules for Buying, Selling, and Mining

Buying and selling crypto in Canada is legal, but it's not considered money. The Financial Consumer Agency of Canada explains that unlike the Canadian dollar, crypto assets are not legal tender.

The Ontario Securities Commission (OSC) lists 14 platforms registered to offer crypto products: Coinsquare Capital Markets, Coinbase Canada, Cybrid Canada, Crypto.com, Fidelity Clearing Canada, Kraken, Ndax Canada, Netcoins, Newton Crypto, Satstreet, Shakepay, Wealthsimple Investments, and Webull Canada Crypto.

These platforms must register with a securities regulator and FINTRAC, Canada's anti-money-laundering agency. They also have to operate under terms set in their decisions, which include limits on leverage, yearly purchase limits, and restrictions on stablecoins.

For example, Kraken has a yearly purchase limit of $30,000 net for most retail clients outside the exempt list (bitcoin, ether, bitcoin cash, litecoin, Solana, and compliant stablecoins). Only approved stablecoins are allowed, such as USDC and QCAD.

The Canada Revenue Agency (CRA) taxes gains when crypto is disposed of, not when it's bought. Mining is also legal in Canada, but power is provincial, and some provinces have drawn lines.