Summary
- Canada is a well-regulated jurisdiction for crypto, featuring a unified reporting system, and strong coordination among regulatory bodies.
- Historically, digital asset considerations have been incorporated into other legislation, but stablecoin-specific legislation is expected to be passed in 2026.
- Oversight continues to grow to address the increasing complexity of financial crimes, including those related to crypto.
- For more information on how crypto is being used in countries worldwide, visit our Crypto in Action page.
Crypto usage in Canada
Canada ranked 27th in the 2025 crypto adoption index, underscoring the continued interest in crypto Canadians show and the broad support the authorities have given to the sector.
While legal, cryptocurrencies are not considered legal tender in Canada. That said, there are no legal gray areas. The authorities treat them as a commodity subject to taxation and securities laws. Crypto can be used to buy goods and services if a merchant is willing to accept payment, though such exchanges may be subject to taxation. To operate legally, exchanges must be authorized through provincial regulators.
Estimates for crypto ownership vary wildly ranging from 4.1% (approximately 1.6 million people) to as many as 40% of the population, although the upper figure remains unverified. A 2022 survey of 1,000 Canadians revealed that 34% of respondents were aged between 18 and 22, and a further 41% between 23 and 35. A total of 58% began buying crypto during the pandemic because they had more time to research and learn about digital assets.
A separate government-commissioned survey about stablecoins in May 2025 revealed that of these respondents, 4% owned stablecoins. Ownership was higher for several groups including households with a higher income, younger people, and indigenous or black individuals. Notably, just 21% could provide an accurate definition of what a stablecoin was, with 58% admitting that they couldn’t do so.
When asked why they purchased them, 32% saw them as a new investment, 30% as a means to diversify their portfolio, 26% exchanged them for other crypto-assets, and 23% felt they posed a lower risk than other crypto-assets.
Government’s attitude towards crypto
Canada is a stable, well-regulated crypto jurisdiction. While no specific crypto laws exist, the authorities have incorporated digital asset considerations into other legislation. There is also a unified federal reporting system and strong coordination among the various regulatory bodies.
In the face of crypto misuse and abuse, requirements have been tightened. Exchanges must obtain either money serving business (MSB) status or register as investment dealers. Those who fail to comply face multi-million dollar fines.
In October 2025, Minister of Finance and National Revenue, François-Philippe Champagne, revealed plans to create a Financial Crimes Agency, as well as unveiling Canada’s first national anti-fraud strategy as part of the country’s 2025 budget. These moves are designed to address the growing complexity of financial crimes, including those related to crypto.
There are a relatively large number of agencies that help regulate the sector (see list below), reflecting Canada’s combined state and federal approach.
Overall, Canada has been receptive to crypto. Notably, it was the first country to approve spot-based exchange-traded funds (ETFs). Its regulators have also publicly expressed support for stablecoins and there is a Stablecoin Act in draft form.
Alongside this, the authorities warn the electorate about crypto risks. Government and regulatory websites describe crypto assets as both “high-risk investments” and “quickly evolving, unstable and complex”. The authorities are keen that Canadians learn as much as they can about digital assets before investing in or using them.
The development of legislation in Canada
Canada began regulating crypto in 2014, becoming the first country to amend its anti-money laundering laws to include virtual currencies. All crypto exchanges have been expected to register with the relevant provincial authority since 2021. This reflects provisions under the Proceeds of Crime and Terrorist Financing Act, which mandates registration with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as well as the provincial regulator providing the authorization for the exchange to operate legally.
In August 2025, the Department of Finance unveiled draft legislation designed to implement the Crypto-Asset Reporting Framework (CARF) as laid out by the Organisation for Economic Co-operation and Development’s (OECD).
If adopted, it will create rigorous reporting rules for crypto-asset providers, trading platforms and online marketplaces, covering information such as client details and transaction volumes.
In its 2025 budget, the government revealed plans to issue legislation that will regulate the issue of stablecoins. The draft act creates what’s been described as a “prudential regime” that will require, among other things, fully backed, bankruptcy remote reserves held with qualified custodians. The central bank, the Bank of Canada, would supervise the regime, which would also require ongoing auditor and legal reporting.
Amendments to the Retail Payment Activities Act have also been tabled. These would enable the regulation of payment service providers who work with “encrypted or tokenized payment instruments.”
Additionally, there has been a push for platforms to become registered investment dealers and CIRO members. Such a move would further integrate digital assets into the traditional financial (TradFi) system.
Alongside this, the Canadian Securities Administrators (CSA) has routinely published guidance related to virtual currencies to address the sector’s rapid evolution.
There are signs that regulation is tightening. In December 2025, the Canada Revenue Agency reported that 40% of crypto users were evading taxation. This prompted the development of new legislation designed to address financial crime, which is expected in 2026.
The regulators at work in the crypto sector
There are a number of regulators that oversee the country’s crypto sector, including the:
Canadian Investment Regulatory Organization (CIRO): this self-regulatory organization oversees investment dealers and trading activity. Any crypto trading platform that wants to become a registered investment dealer is expected to become a CIRO member.
Canada Revenue Agency (CRA): is responsible for taxation.
Canadian Securities Administrators (CSA): the umbrella organization for the country’s securities regulators. It coordinates and harmonizes regulations, and issues guidance for crypto asset trading platforms.
Financial Consumer Agency of Canada (FCAC): focuses on consumer protection by providing educational resources and warnings about financial products.
Financial Transactions and Reports Analysis Centre of Canada (FINTRAC): the country’s financial intelligence unit. It enforces AML and counter-terrorist financing (CTF) legislation. All crypto exchanges must register with FINTRAC.
Securities Regulators: these provincial and territorial regulators are responsible for registering and overseeing trading platforms. They enforce securities laws at the provincial level.
Timeline of legislative and regulatory developments
2013
In December, the CRA issued its first bulletin about crypto, with a focus on bitcoin.
2014
Canada became the first country to amend its anti-money laundering laws to include virtual currencies.
2018
Describing digital assets, the CSA announced in a Staff Notice that “every offering is unique and must be assessed on its own characteristics.” The key criteria noted was whether the asset constituted an “investment contract.”
2020
As of June, entities engaged in digital assets became considered as MSBs. As a result, they had to register with FINTRAC and comply with relevant KYC and AML obligations.
2021
Securities regulators mandated that all crypto trading platforms register with provincial authorities.
Spot ETFs were launched.
2022
In November, the government began formal consultations on the digitalization of money.
2023
The government, the Royal Canadian Mounted Police (RCMP) (national police force), and Shared Services Canada (SSC), (responsible for government information technology services) announced they were seeking submissions and proposals for the development of a Digital Asset Repository. This would facilitate the seizure and storage of cryptocurrency and non-fungible tokens (NFTs).
2024
In October, the government announced plans to adopt the OECD’s CARF by 2027.
2025
The CRA provided clarity on custodial staking arrangements.
In April, regulators finalized amendments to National Instrument 81-102 – Investment Funds. This codified requirements for public crypto-asset funds.
In June, CIRO held a roundtable on crypto-asset trading platforms with a focus on operational resilience and crisis preparedness. Later the same month it published the Enforcement Report, detailing enforcement actions against crypto trading platforms and dealer members.
In August, the finance department unveiled draft legislation for CARF.
The following month, the policy announced the largest digital asset seizure in Canada’s history, worth CAD 56 million ($40 million), recovered from the TradeOgre exchange.
In October, the finance department announced it would be introducing legislation in 2026 to help better support attempts to compel disclosures from exchanges. The same month, the finance minister announced forthcoming plans to create a Financial Crimes Agency.
The following month, the government announced plans to introduce stablecoin legislation, and the central bank allocated CAD 10 million to administer a stablecoin regime over two years.
2026
In February, CIRO released a notice outlining digital asset custody requirements for dealer members operating crypto-asset trading platforms in the country.
Outlook
After making significant strides in 2025 to consolidate its position on crypto, this work is expected to continue in 2026. While the authorities are tightening regulation and setting aside more resources to target financial malpractice and crime, their attitude towards the crypto sector hasn’t soured. If anything, the wider approach appears set on bringing crypto into the TradFi sphere.
That said, compliance and transparency pressures are expected to intensify through steps like CARF (and its reporting regimes) as the authorities seek to better protect users and counter crypto fraud and criminal financial crime.The country’s stablecoin legislation is expected to be passed during 2026 and will mark Canada’s first specific framework for crypto-assets.
