Navigating Canada’s Crypto Exchange Landscape: Challenges and Options

The cryptocurrency landscape in Canada has experienced significant growth in terms of users and trading volume. However, the selection of crypto exchanges available to Canadian residents is relatively limited compared to some other countries. This is due to the stringent process of applying for a crypto exchange license imposed by the Canadian Securities Administration (CSA). As a result, popular global crypto trading giants like Binance, KuCoin, and OKX are either unavailable or have severely limited functionality in the country.

In this article, we will explore the best crypto exchanges that are legal in Canada, examining their main features, pros, and cons.

Best Crypto Exchanges for Canadian Users in 2024

Here are the top crypto exchanges for Canadian users in 2024:

1. Kraken – The best crypto exchange for Canadian users overall
2. Coinbase – The most user-friendly crypto exchange
3. Crypto.com – A powerful crypto trading app with a focus on DeFi
4. Gemini – A trusted crypto exchange for users from Canada
5. Bitbuy – A CSA-regulated crypto trading platform
6. NDAX – Canada-based crypto exchange
7. Shakepay – Regulated platform for Bitcoin investors and users

Examining the Top Platforms in 2024

1. Kraken – The Best Crypto Exchange for Canadian Users Overall

Kraken is arguably the best choice for trading crypto assets in Canada. It offers a wide selection of cryptocurrencies, including popular ones like Bitcoin and Ethereum, as well as smaller market-cap coins and tokens. Kraken has a strong track record of security, having never been hacked or compromised.

Aside from spot trading, Kraken supports various other trading features such as margin trading, futures, and an NFT marketplace. The platform also offers the opportunity to earn staking rewards of up to 26% APY through its Earn platform.

It’s important to note that Kraken is still awaiting official approval from the CSA for a crypto exchange license. However, the company remains committed to the Canadian market and continues to accept new users from the country.

Key features:

• One of the safest cryptocurrency exchanges in the industry
• Supports over 200 cryptocurrencies across more than 600 trading pairs
• Wide selection of educational material
• Supports futures, passive income strategies, and margin trading
• Offers markets denominated in fiat currencies, including the Canadian dollar

2. Coinbase – The Most User-Friendly Crypto Exchange

Established in 2012, Coinbase is a pioneer in cryptocurrency trading and is known for its user-friendly interface. It offers a simple and easy-to-use platform, making it one of the most popular exchanges in the space.

Coinbase boasts strong security measures and has never experienced a significant attack or compromise. The exchange supports over 220 cryptocurrencies, providing a wide range of options for users.

It’s worth noting that Coinbase also supports SEPA payments, making it a suitable option for users who plan on traveling overseas and using the euro to buy crypto.

Key features:

• Focus on simplicity and ease of use
• Self-custodial crypto wallet
• NFT marketplace
• Publicly traded in the US, subject to increased scrutiny
• One of the leading exchanges by trading volume

3. Crypto.com – A Powerful Crypto Trading App with a Focus on DeFi

Crypto.com is a popular crypto trading app with over 80 million users worldwide. It offers an efficient fiat-to-crypto onboarding process and works closely with regulators to ensure compliance.

In addition to cryptocurrency trading, the platform provides access to NFTs and crypto staking. Crypto.com is known for its crypto credit cards, which allow CRO holders to earn up to 5% cashback. The platform also offers a range of decentralized finance (DeFi) features, including a DeFi Wallet, DeFi Earn, and DeFi Swap products.

Key features:

• Sleek app user interface
• Supports NFT trading
• Wide range of DeFi features
• Crypto credit card with CRO cashback rewards
• Supports a large number of cryptocurrencies

4. Gemini – A Trusted Crypto Exchange for Users from Canada

Gemini, founded by the Winklevoss twins in 2014, is a prominent cryptocurrency exchange known for its commitment to regulatory compliance and security. The platform caters to both novice and experienced traders and offers a user-friendly interface.

Gemini provides a variety of cryptocurrencies for trading and has expanded its services to include features like staking and interest-earning accounts. It’s important to note that Gemini has faced charges from the U.S. Securities and Exchange Commission (SEC) regarding its Earn Lending program, which may affect the availability of certain offerings.

Key features:

• Founded by the Winklevoss twins, early Bitcoin investors
• One of the oldest crypto exchanges
• Supports a relatively low number of cryptocurrencies
• Earn Lending program
• Strong commitment to regulatory compliance

5. Bitbuy – A CSA-Regulated Crypto Trading Platform

BitBuy is a regulated crypto trading platform in Canada, licensed by the CSA in November 2021. Although it has the smallest trading volume among the exchanges listed here, it offers a secure and legally compliant option for Canadian users.

BitBuy is available on both desktop and mobile platforms, supporting various deposit and withdrawal options, including Interac, bank wire transfers, and debit/credit cards. The platform charges no deposit fees for certain methods, such as Apple Pay and cryptocurrency deposits.

Key features:

• Regulated by the CSA
• Based in Canada
• Supports dozens of cryptocurrencies
• Native application for iOS and Android

6. NDAX – Canada-Based Crypto Exchange

NDAX is a Canada-based crypto exchange that adheres to strict regulations set by the CSA. While it may not offer as many features as international exchanges like Kraken and Coinbase, it provides sufficient functionality for most users.

NDAX supports Bitcoin and over 30 altcoins, including major cryptocurrencies like Bitcoin, Avalanche, and Solana, as well as meme coins like Shiba Inu. The exchange also offers a staking program, allowing users to earn staking rewards on their crypto assets.

Additionally, NDAX has a referral program that allows users to earn commissions for referring others to the platform.

Key features:

• Regulated by the CSA
• Based in Canada
• Supports major cryptocurrencies and altcoins
• Staking program
• Referral program with generous commissions

7. Shakepay – Regulated Platform for Bitcoin Investors and Users

Shakepay is a regulated platform that focuses on the Canadian market. It allows users to easily buy, sell, and spend Bitcoin. Shakepay is registered with the Autorité des marchés financiers (AMF) and other Canadian securities regulators.

Shakepay is particularly useful for those who want to invest in Bitcoin gradually, as it offers an auto-buy feature that enables users to purchase BTC at regular intervals. This facilitates the implementation of a dollar-cost averaging (DCA) strategy.

The platform also offers a Visa card that provides 1% Bitcoin cashback on all purchases. Users can spend CAD held in their Shakepay account, and the BTC rewards are credited back to their Shakepay account. Shakepay can also be used to pay bills or send money to other platform users.

Key features:

• Regulated by the AMF and Canadian securities regulators
• Offers a Visa card with BTC cashback
• Auto-buy feature
• Simple user experience
• Focuses on Bitcoin

Conclusion

While the cryptocurrency landscape in Canada has witnessed significant growth, the selection of crypto exchanges available to Canadian residents is relatively smaller compared to some other countries. However, there are still several reputable and legally compliant exchanges for Canadian users to choose from.

Kraken, Coinbase, Crypto.com, Gemini, Bitbuy, NDAX, and Shakepay are among the top crypto exchanges available in Canada. Each exchange offers unique features and advantages, catering to different user preferences and needs.

It’s important for Canadian users to consider factors such as security, regulatory compliance, supported cryptocurrencies, user experience, and additional features when selecting a crypto exchange. By choosing a reputable and reliable exchange, Canadian users can participate in the cryptocurrency market with confidence.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.