Highlights
Regulation is a big reason that many crypto exchanges are banned in Canada. While crypto exchanges are not illegal, the rules in Canada are much stricter than other jurisdictions around the world.
These actions aim to protect Canadian investors however, it has also left Canadians with fewer options to buy, sell, and trade cryptocurrencies. Many platforms think it is simply not worth the trouble to operate in Canada, so they leave.
Why Are Crypto Exchanges Leaving Canada?
In February 2022, the Canadian Securities Administrators (CSA) issued a notice mandating that all crypto exchanges operating in Canada must register with regulators and follow the new "enhanced" regulations. In response, many crypto exchanges have exited Canada.
The latest regulatory developments have become too burdensome or not worth the effort for many platforms, causing lots of crypto exchanges to exit the Canadian market. Unregistered platforms that continue serving Canadians will likely get fined millions of dollars.
List of Banned Platforms
Here is a list of platforms that are banned in Canada since they are unregistered with regulators.
*Banned but still servicing Canadians
Binance
Binance is the world's largest cryptocurrency exchange by trading volume. In 2021, Binance pulled their services out of Ontario and in May 2023, they announced they will be pulling out of Canada entirely. Users cannot use Binance with a VPN because KYC is required, so your identity must be verified to trade on the platform.
Timeline
KuCoin
Starting July 15, 2023, KuCoin will require mandatory KYC to use the platform. After this date, deposits and trades will stop working. Canada will be an unspported county. In addition, KuCoin is on the CSA's and OSC's banned list.
Bybit
Bybit announced its decision to "pause" servicing the Canadian market effective May 31, 2023. Existing users can make trades until July 31, 2023 and have until Sep 30, 2023 to liquidate or withdraw their positions. This comes a few weeks after Bybit introduced mandatory KYC on their platform.
Timeline
Gate.io
Gate.io left Canada in April 2022, citing Canada as a restricted country on their terms of service. Their user agreement says, “Use of the service by users from the United States of America, Mainland China, Canada, Singapore, Malaysia, Malta, Cuba, Iran, NorthKorea, Sudan, Syria, Crimea region, Bolivia is prohibited."
Timeline
OKX
On March 20, 2023, OKX emailed clients that they are ceasing operations in Canada. In their statement, they assured users the it will be temporary and they are working with regulators to resolve the issue. The OKX staff wrote, "We hope to see you again in the future. Stay tuned."
Timeline
Bittrex Global
Bittrex Global exited Canada on July 28, 2022, citing new regulatory developments as the reason. They said that "We have partnered with Catalyx to simplify this process for our users, enabling them to opt in and have their accounts automatically transferred to Catalyx, the leading Canadian digital asset trading platform."
Timeline
Huobi Global
Huobi Global left Canada on July 01, 2021 to comply with local regulations. They requested their Canadian users to close out all active positions and withdraw all digital assets before December 31, 2021, citing Canada as a restricted jurisdiction.
Timeline
Paxos
Paxos made an announcement on April 11, 2023 that it would no longer be serving its Canadian users. As part of the exit process, Paxos will block and close all accounts of Canadian users with no funds by May 9. Users will have until June 2 to withdraw the remaining funds.
Timeline
Banned But Still Functional
Other platforms have been banned, fined, and warned by Canadian regulators but have not stopped servicing Canadian clients. All of these platforms do not require KYC, so they don’t check the identity of who is signing up. If a platform doesn’t require KYC, you can technically still trade and withdraw funds at your own risk.
MEXC
MEXC is a Binance and KuCoin alternative with 1,500+ cryptocurrencies, zero spot trading fees, and up to 200x leverage. On its terms of service it says Canada is a prohibited region however, they do not ask for KYC when signing up. As of this writing, MEXC users can withdraw 30 BTC per day with unverified accounts.
Poloniex
Poloniex is an unregistered crypto exchange that was put on the OSC's and CSA's banned list. The OSC said that Poloniex has "failed to comply with the registration and prospectus requirements under Ontario securities law." Despite the OSC's warning, Canada isn't found on Poloniex's list of prohibited Countries. They still do not ask for KYC and offer a $10,000 daily withdrawal limit.
dYdX
dYdX is a decentralized exchange that stopped servicing Canadians on April 7, 2023. In their statement they wrote, "We hope that the regulatory climate in Canada will change over time to allow us to resume our services in the country." While dYdX is unavailable in the USA and Canada, it's a decentralized exchange, so it still works with a VPN at your own risk.
Summary
With new crypto regulations in Canada, many platforms find it too burdensome to operate in the Canadian market. As a result, many crypto exchanges are leaving. If they have not registered with Canadian regulators, they are effectively banned and will be charged millions of dollars in fines if they continue to service Canadian clients.
Overall, the crypto industry is still evolving, and it remains to be seen how these recent regulatory developments will shape the future of crypto trading in Canada.
Best Crypto Exchanges Canada
I've reviewed over 30 crypto exchanges in Canada and NDAX is my top pick for the majority of Canadians, followed by Kraken and MEXC for altcoins. Each platform has a review if you'd like to learn more.
NDAX had the lowest fee to buy Bitcoin with Canadian dollars (18 platforms tested). It's my top choice in Canada.
Kraken is fully regulated in Canada and offers 200+ cryptos, professional trading, and high liquidity.
One of the largest non-KYC exchanges. You can withdraw 30 BTC/day with just an email address.
FAQ
Can You Still Use Banned Platforms?
Some platforms don't require KYC, which means they turn a blind-eye and let you trade without providing your identity. However, users should be aware of the potential risks of using such platforms, including the potential for fraudulent activity, lack of transparency and accountability, and lack of investor protection.
Can You Use A VPN?
For exchanges that block IP addresses, you can use a VPN to get around it. However, it won't work if the platform requires KYC. In addition, VPNs can still be spotted, and you could be banned at any time without prior warnings.
What Are The Alternatives for Canadians?
Canadians can use crypto exchanges like NDAX, Kraken, VirgoCX, and more. You can check out this exchange comparison tool. In addition, if you want to trade any altcoin you want, it's helpful to learn how to use DEXs (decentralized exchanges).