In 2021, the Ontario Securities Commission (OSC) accused several crypto exchanges of not being compliant with securities regulations in the province. These exchanges included Binance, Poloniex, and KuCoin. While the other two exchanges ignored the OSC’s request to halt operations or comply with regulations, Binance decided to cease operations in Ontario.
As of January 2023, nothing has changed since then. If you reside in Ontario, you cannot use Binance. However, there are currently no restrictions in all other Canadian provinces and territories. There are rumors, that Binance is working on the new Canadian version website. If you are from other provinces you can keep using Binance, in my personal opinion it’s the best crypto exchange out there because it offers so many opportunities and they keep the trading fees very low because they have tons of users globally. Use our referral link to get a sign-up bonus.
In a recent update, Binance has announced its decision to exit the Canadian market by October 2023. As an excellent alternative, we highly recommend considering Bitget to buy USDT. With a user-friendly interface resembling Binance, this reputable crypto exchange offers a seamless trading experience. Moreover, as a special promotion, they are generously providing a promo code that grants you 50 USDT upon a deposit of $500 USD or more if you sign up with our referral link.
For Ontario residents, here are some alternative crypto exchanges that you can use:
Coinsmart
Coinsmart is a publicly-traded crypto exchange that offers low fees and some of the most popular cryptocurrencies including Bitcoin, Ethereum, Litecoin Uniswap, Chainlink, Polkadot, Dogecoin, Shiba Inu, Bitcoin Cash, EOS, Stellar, USDC, Cardano, Avalanche, Solana, and Polygon. I personally have been using them for many years due to very low trading fees and free deposits of over $2000. They are fully compliant in Canada and that’s why it’s the most trusted exchange by Canadians.
- Trading fees: 0.2%
- Deposit fees: 1% for the amount under $2000. Free deposits over $2000
- Deposit methods: Interac e-Transfer, bank wire, credit and debit cards, crypto
You can sign up here and claim free $50 in bitcoin.
Bitbuy
Bitbuy is one of Canada’s most reputable exchanges offering 25 cryptocurrencies including Bitcoin, Ethereum, Fantom, Aave, Solana and more. Bitbuy is suitable for both beginners and experienced traders looking for advanced trading tools. The deposit fees are quite high though.
- Trading fees: 0.1%/0.2%
- Deposit fees: 1.5%
- Deposit methods: Interac e-Transfer, bank wire, crypto
You can sign up here and claim free $20.
Wealthsimple Crypto
Wealthsimple is one of Canada’s top trading brokerages offering stocks, bitcoin ETFs, and crypto. Perfect for anyone looking to keep their investments in one place, Wealthsimple is the first regulated crypto trading platform in Canada. With Wealthsimple you can get instant deposits so you don’t have to wait to trade but the trading fees are quite high.
- Trading fees: 1% to 2%
- Deposit methods: Electronic funds transfer, crypto
You can sign up here and claim free $50.
Newton
Newton is fast becoming one of Canada’s top crypto exchanges for beginners. It is simple to use and has no fees for deposits or withdrawals. Newton offers more than 60 cryptocurrencies including Bitcoin, Ethereum, Loopring, Axie, Chromia, Fantom, and more. Keep in mind that spread fees are quite high.
- Trading fees: Up to 0.7%
- Spread: 0.5 – 0.7%
- Deposit methods: Interac e-Transfer, bank wire, crypto
You can sign up here and claim free $25.
Crypto.com
Crypto.com is a top global exchange but it’s also convenient for Canadians. It offers hundreds of cryptocurrencies including Bitcoin, Ethereum, Enjin Coin, Cardano, Polkadot, Avalanche, and many more altcoins. There is also staking available and crypto Visa cards to earn crypto on your spending.
- Trading fees: Up to 0.4%
- Deposit methods: Interac e-Transfer, bank wire, crypto
Canada, Ontario vs. Binance: What is happening?
Binance has ceased operations in Ontario after the Ontario Securities Commission (OSC) accused three other crypto exchanges of failure to comply with Ontario’s Securities Act. Rather than comply or have actions filed against them, Binance has decided to stop operating in Ontario altogether. The exchange has blocked services to Ontario and has urged its users to “close active positions” by December 31, 2021.
The OSC has alleged that Bybit, Poloniex, and KuCoin have failed to comply with Ontario regulations. Bybit allows users to trades futures contracts, which the OSC says are securities and derivatives. In the statement of allegations against Bybit, the OSC says “Bybit only provides its investors with instruments or contracts involving crypto assets. These instruments or contracts constitute securities and derivatives.” The OSC alleges that Bybit failed to comply with registration requirements that apply to those who facilitate the trading of securities and derivatives. In the statement, the OSC goes on to say that any crypto exchange disregarding securities law will face regulatory action.
For Binance users being forced to close their accounts, there could be tax implications. Selling crypto for fiat and trading from one crypto to another constitutes a taxable transaction. Users may have to pay income tax or capital gains tax. For Binance users in Ontario, it’s important to export all of your trade details by the December deadline so that you can accurately complete your taxes next year.
As a result, we recommend to Ontario Binance users move their funds to another crypto exchange for Canadians as soon as possible. It’s also good practice for anybody who purchases crypto to ensure you keep records of your transactions for tax purposes.
It’s unclear at this point if Binance will halt operations in other provinces, or if the OSC will take action against any more exchanges. Cryptocurrency regulations are still being ironed out, so it’s important to be aware that things can change quickly, just as we’ve seen with Binance. It seems that Binance is legit for Ontario Securities Commission (OSC) now.
Email history from Binance:
December 29, 2021: Binance Canada has recently sent the following email to their users:
Dear Binancian,
In June, we wrote to you due to Ontario becoming a restricted jurisdiction, and that you may need to close your Binance account. However, as a result of ongoing and positive cooperation with Canadian regulators, Binance in Canada has been successful in taking its first steps on the regulatory path by registering in Canada as a Money Services Business with FINTRAC.
This registration allows us to continue our operations in Canada and resume business in Ontario while we pursue full registration. As a result of ongoing and positive cooperation with Canadian regulators, there is no need for Ontario users to close their accounts by December 31, 2021.
January 6, 2022:
Dear Ontario user,
We are writing to you to confirm that your account with Binance has been restricted and you are not permitted to trade any product.
Binance users in Ontario can close, reduce, and/or redeem their positions, and can withdraw funds from their Binance accounts if they so wish. For derivatives accounts, users can top-up margin balances to prevent margin calls and liquidations.
We recognise that these restrictions may be disruptive, and we apologise for any inconvenience that this may cause to users. We also apologise to the Ontario Securities Commission and we take full responsibility by taking these restrictive steps.
Thank you for your understanding. If you have any questions please do not hesitate to contact customer service.
We reached out to Binance on that matter: “Binance accounts in Ontario remain restricted and users in Ontario will not be able to open new accounts or trade. Users can withdraw their assets at any time. We recognise that these restrictions may be disruptive in the short term, and we apologise for any inconvenience that this may cause. We will provide further updates in due course. Thank you for your patience and understanding.“
Some Ontario Binance users say, they were able to reverify their account by using IDs from a different province or country. Others switched over Kucoin because it has an almost identical user experience. Keep in mind that Kucoin has failed to comply with Ontario regulations as well. However, they did not restrict Ontario users.
Latest update as of Jan 2023: unfortunately, the Canadian province of Ontario banned Binance. Instead, we would recommend using something from our rating of the best cryptocurrency exchanges for Canadians.
Is Binance Safe and Legal for Canadians?
Binance is safe for Canadians to use. Two-factor authentication is enabled on accounts, but you can take additional steps to secure your account. Consider:
- Anti-virus software for your computer
- Using a VPN when not using a secure wifi connection
- Using an incognito window or a separate browser (without extensions or plugins) for crypto activities
- Avoid clicking unknown links
- Transferring your crypto to a secure private wallet
What Are The Alternatives?
There are so many crypto exchanges available for Canadians besides Binance. We highly recommend you check this list of Canadian cryptoexchanges and pick the crypto exchange that works best for your needs.
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