Crypto in Canada: The Complete Guide

AI summary

Cryptocurrency in Canada has evolved into a mainstream financial asset, with over 15% of Canadians participating in trading or holding digital currencies like Bitcoin and Ethereum. The country maintains a regulated yet supportive environment, with clear legal status, tax obligations, and a focus on security through self-custody wallets such as Tangem. As adoption grows and regulatory clarity improves, Canada is positioned as one of the most transparent and trusted crypto ecosystems globally.

Cryptocurrency in Canada has moved well beyond a niche interest. Over the past few years, digital assets such as Bitcoin, Ethereum, and stablecoins have become integral to everyday financial conversations. From casual investors to tech-savvy entrepreneurs, Canadians are exploring crypto for investment, payments, and innovation. The Bank of Canada continues to study digital assets and the potential for a central bank digital currency (CBDC), while maintaining a balanced approach toward regulation and innovation. Combined with strong compliance frameworks and a growing user base, crypto in Canada has become one of the most transparent and trusted ecosystems globally.

Key Takeaways

• Legal Status: Cryptocurrency is legal in Canada and regulated under existing financial laws.
• Adoption: Over 15% of Canadians now hold or trade crypto, with Bitcoin leading the market.
• Top Platforms: Bitbuy, Kraken, Coinbase, Binance, and Tangem are among the most trusted options.
• Taxes: Crypto is taxable under the Canada Revenue Agency (CRA) as capital property or business income.

Is Crypto Legal in Canada?

Yes. Cryptocurrency operates in a regulated but supportive environment. The Financial Transactions and Reports Analysis Center of Canada (FINTRAC) requires crypto exchanges and service providers to register as money services businesses (MSBs). The registration requirement ensures compliance with anti-money laundering (AML) and know-your-customer (KYC) rules.

The Canadian Securities Administrators (CSA) also monitor trading platforms to protect investors. Exchanges that deal with Canadian clients must meet clear security, custody, and reporting standards. Meanwhile, the Bank of Canada continues researching a potential CBDC (Central Bank Digital Currency) — a digital form of the Canadian dollar that could coexist with private cryptocurrencies.

How to Buy Cryptocurrency in Canada using Tangem

Buying crypto in Canada has never been easier. Whether you’re looking to buy Bitcoin, Ethereum, or stablecoins, you can use Tangem to securely manage your assets without relying on centralized exchanges.

Step 1 – Get Tangem Wallet

Download the Tangem Wallet app and activate your smart card wallet. It gives you self-custody — meaning you’re entirely in control of your funds, not an exchange.

Step 2 – Complete KYC and Verification

If you buy through a partnered exchange, you must verify your identity with a government-issued ID, proof of address, and a selfie. Canadian AML laws require such verification.

Step 3 – Deposit Funds in CAD

You can deposit Canadian dollars (CAD) through Interac e-transfer, bank wire, or debit/credit card, depending on your preferred method of exchange. Tangem partners with regulated providers to make funding simple and straightforward.

Step 4 – Buy Bitcoin or Altcoins

Once your account is ready, buy BTC, ETH, SOL, ADA, or stablecoins directly. Then, transfer them to your Tangem wallet for safe, offline storage.

Best Crypto Exchanges in Canada (2025)

If you prefer full control, pairing a Tangem wallet with decentralized apps like Uniswap allows you to trade without surrendering custody.

How to Store Your Crypto Safely in Canada

Keeping your crypto safe is just as important as buying it. In Canada, the best approach is to use a crypto wallet that gives you complete control of your private keys.

Risks of Keeping Crypto on Exchanges

Leaving funds on exchanges exposes you to hacks, insolvency, and withdrawal freezes. Even regulated exchanges are custodial — meaning they technically hold your coins. A self-custody option like Tangem Wallet ensures your assets stay secure in your hands, protected by chip-based encryption.

Types of Wallets

• Software Wallets: Mobile or browser-based apps like MetaMask and Trust Wallet are great for frequent traders, but their security depends on your device.
• Hardware Wallets: Tangem, Ledger, and Trezor store your keys offline. Tangem stands out for its simplicity—just tap the card to start.

Is Crypto Taxed in Canada?

Yes, Canada taxes cryptocurrency. The Canada Revenue Agency (CRA) treats crypto as property, not legal tender. Not from Canada? Check our guides for the UK, Brazil, India, Spain, and France on crypto.

Tax Rate and Rules

Selling, trading, or using crypto for profit may be a capital gain or business income.

• Capital Gains: Only 50% of your gain is taxable.
• Business Income: If trading is your primary source of income, it’s fully taxable.
  Rates vary by province and your total income.

How to Calculate Crypto Tax

You must track the cost basis and proceeds of each transaction. Tools like Koinly or CoinTracking help automate your tax reports for the CRA.

Example:

• Buy 1 BTC for $50,000
• Sell for $60,000 → $10,000 gain.
• $5,000 is taxable (50% of the gain)

Is Crypto Mining Legal in Canada?

Yes, crypto mining in Canada is legal. However, it’s treated as a business if you mine regularly for profit.

Mining Regulations

Mining is permitted nationwide, although electricity costs and provincial policies vary. Quebec and Alberta are popular due to lower energy rates. You must declare mining income for tax purposes.

How to Mine Crypto in Canada

You’ll need ASIC or GPU miners, join a mining pool like Antpool or F2Pool, and factor in cooling and power costs. Environmental sustainability is becoming increasingly important, with many Canadian miners shifting toward renewable energy sources.

How to Buy NFTs in Canada Using Tangem

NFTs are another rapidly growing sector of Canada's digital economy. Here’s how to get started with Tangem:

1. Set Up Tangem Wallet — Activate your wallet and secure your private keys.
2. Buy ETH or SOL — Use Tangem’s integrated purchase options.
3. Connect to Marketplaces — Use platforms like OpenSea, Blur, or Rarible.
4. Browse and Buy NFTs — Easily collect digital art, collectibles, or gaming assets.

Because Tangem is self-custodial, your NFTs stay safely stored on your card, not a centralized platform.

Future of Crypto in Canada

Canada’s stance on crypto remains cautiously optimistic. The government is advancing research on CBDCs, while institutions like banks and pension funds are exploring blockchain for settlements and security. For investors and businesses, 2025 signals a shift toward regulatory clarity, better infrastructure, and broader adoption. With secure wallets like Tangem and regulated exchanges, Canadians are well-positioned to participate in the global digital economy.

FAQ about Crypto in Canada

Is Bitcoin legal in Canada?

Yes. Bitcoin and other cryptocurrencies are subject to existing financial laws and are legal and regulated.

Do you pay tax on crypto in Canada?

Yes. The CRA taxes cryptocurrency as either capital property or business income, depending on how it is used.

Can you mine crypto in Canada?

Yes, mining is legal. You must report mining income and follow provincial electricity rules.

What is the best crypto exchange in Canada?

Bitbuy, Kraken, and Coinbase are top choices. For self-custody, Tangem offers unmatched security.

How to buy Bitcoin with CAD?

Use an exchange that supports Interac e-Transfer or debit/credit cards, then transfer your Bitcoin to your Tangem wallet for safekeeping.