In 2021, the Ontario Securities Commission (OSC) accused several cryptocurrency exchanges of failing to comply with provincial securities laws. These exchanges included Binance, Poloniex, and KuCoin. While the other two exchanges ignored the OSC’s request suspend operations or comply with regulations, Binance has decided to cease operations in Ontario.
As of January 2023, nothing has changed since then. If you live 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 a new Canadian version of the site. If you are from other provinces you can still use Binance, in my opinion it is the best cryptocurrency exchange on the market because it offers so many options and keeps the trading fees very low since it has tons of users around the world. Use our referral link to receive 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 cryptocurrency exchanges you can use:
Coinsmart
Coinsmart is a publicly traded cryptocurrency 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 have personally been using them for many years due to their very low transaction fees and free deposits of over $2,000. In Canada, they are fully compliant and that is why it is the most trusted exchange among Canadians.
- Trading fees: 0.2%
- Escrow fees: 1% for amounts under $2,000. Free deposits over $2,000
- Deposit methods: Interac e-Transfer, bank transfer, credit and debit cards, cryptocurrencies
You can sign up here and claim your free $50 in Bitcoin.
Bitbuy
Bitbuy is one of the most reputable exchanges in Canada offering 25 cryptocurrencies including Bitcoin, Ethereum, Fantom, Aave, Solana and others. Bitbuy is suitable for both beginners and experienced traders looking for advanced trading tools. However, deposit fees are quite high.
- Trading fees: 0.1%/0.2%
- Escrow fees: 1.5%
- Deposit methods: Interac e-Transfer, bank transfer, cryptocurrency
You can sign up here and get a free $20.
Wealth made simple crypto
Wealthsimple is one of Canada’s top brokerages offering stocks, bitcoin and cryptocurrency ETFs. Perfect for anyone who wants to keep their investments in one place, Wealthsimple is the first regulated cryptocurrency trading platform in Canada. With Wealthsimple you can get instant deposits so you don’t have to wait for a transaction, but the transaction fees are quite high.
- Trading fees: 1% to 2%
- Deposit methods: Electronic funds transfer, cryptocurrency
You can sign up here and get a free $50.
Newton
Newton is quickly becoming one of the best Canadian cryptocurrency exchanges for beginners. It is simple to use and there are no fees for deposits and withdrawals. Newton offers over 60 cryptocurrencies, including Bitcoin, Ethereum, Loopring, Axie, Chromia, Fantom and others. Please note that spread fees are quite high.
- Trading fees: Up to 0.7%
- Proliferation: 0.5 – 0.7%
- Deposit methods: Interac e-Transfer, bank transfer, cryptocurrency
You can sign up here and get a free $25.
Crypto.com
Crypto.com is a leading global exchange, but it’s also convenient for Canadians. It offers hundreds of cryptocurrencies including Bitcoin, Ethereum, Enjin Coin, Cardano, Polkadot, Avalanche and many other altcoins. There are also staking and crypto Visa cards available so you can earn crypto on your spending.
- Trading fees: Up to 0.4%
- Deposit methods: Interac e-Transfer, bank transfer, cryptocurrency
Canada, Ontario vs. Binance: What’s Going On?
Binance ceased operations in Ontario after Ontario Securities Commission (OSC) accused three other cryptocurrency exchanges of failing to comply with the Ontario Securities Act. Rather than comply or bring action against them, Binance has decided to completely cease operations in Ontario. The exchange blocked services to Ontario and urged its users to “close out active positions” by December 31, 2021.
The OSC alleged that Bybit, Poloniex and KuCoin failed to comply with Ontario regulations. Bybit allows users to trade futures contracts, which OSC says are securities and derivatives. In statement of charges v. Bybit, the OSC states that “Bybit only provides its investors with instruments or contracts involving cryptographic assets. These instruments or contracts constitute securities and derivatives.” The OSC accuses Bybit of failing to comply with registration requirements applicable to entities facilitating trading in securities and derivatives. The OSC statement further states that any cryptocurrency exchange flouting securities laws will face regulatory action.
There may be tax consequences for Binance users forced to close their accounts. Selling cryptocurrencies for fiat and trading one cryptocurrency for another is a taxable transaction. Users may be liable to pay income tax or capital gains tax. For Binance users in Ontario, it’s important to export all transaction details before the December deadline so you can complete your taxes accurately next year.
As a result, we recommend Ontario Binance users transfer their funds to another cryptocurrency exchange for Canadians as soon as possible. It’s good practice for anyone purchasing cryptocurrencies to make sure you keep a record of your transactions for tax purposes.
At this point, it is unclear whether Binance will suspend operations in other provinces or whether the OSC will take action against additional exchanges. Cryptocurrency regulations are still being refined, so it is important to be aware that the situation can change quickly, as we saw with Binance. It appears that Binance is now legal to the Ontario Securities Commission (OSC).
Binance email history: :
December 29, 2021: Binance Canada recently sent the following email to its users:
Dear Binancian,
In June, we wrote to you because Ontario had become a restricted jurisdiction and that you might have to close your Binance account. However, as a result of continued and positive cooperation with Canadian regulators, Binance Canada has successfully taken its first steps on the regulatory path by registering in Canada as a money services company with FINTRAC.
This registration allows us to continue our operations in Canada and resume operations in Ontario, pending full registration. As a result of continued and positive cooperation with Canadian regulators, Ontario users do not have to close their accounts until December 31, 2021.
January 6, 2022: :
Dear Ontario user,
We are writing to you to confirm that your Binance account has been restricted and you cannot trade any products.
Binance users in Ontario can close, reduce and/or exchange their positions, and can also withdraw funds from their Binance accounts if they wish. For derivatives accounts, users can top up their margin balance to prevent margin calls and liquidations.
We recognize that these restrictions may cause disruption and apologize for any inconvenience this may cause to users. We also apologize to the Ontario Securities Commission and take full responsibility for taking these restrictive steps.
Thank you for your understanding. If you have any questions, please do not hesitate to contact customer service.
We have contacted Binance regarding this 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 recognize that these restrictions may cause disruption in the short term and apologize for any inconvenience 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 re-verify their account using IDs from another province or country. Others have switched to Kucoin because it has an almost identical user experience. Please note that Kucoin also failed to comply with Ontario regulations. However, they did not restrict Ontario users.
Latest update January 2023: Unfortunately, the Canadian province of Ontario has banned Binance. Instead, we recommend using something from our review of the best cryptocurrency exchanges for Canadians.
Is Binance safe and legal for Canadians?
Binance is safe for Canadians. Two-factor authentication is enabled on accounts, but you can take additional steps to secure your account. To consider:
- Antivirus software for your computer
- Using a VPN when you’re not using a secure Wi-Fi connection
- Using an incognito window or a separate browser (without extensions or plug-ins) for cryptocurrency-related activities
- Avoid clicking on unknown links
- Transferring your cryptocurrency to a secure private wallet
What are the alternatives?
Apart from Binance, there are so many cryptocurrency exchanges available for Canadians. We highly recommend checking out this list of Canadian cryptocurrency exchanges and choosing the one that best suits your needs.
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