Crypto adoption in Canada has picked up momentum in 2023. A recent report published by the Ontario Securities Commission indicated that nearly 30% of Canada’s adult population has had exposure to cryptocurrencies since the start of the year.
If you wish to learn how to purchase Bitcoin and other crypto assets in Canada, this guide is for you. Keep reading to understand the process of acquiring your first crypto.
Is Crypto Trading legal in Canada?
The correct answer to this question is yes! However, it is important to mention that crypto is not regarded as a legal tender in Canada. The country’s taxman, Canada Revenue Agency (CRA), has its definition of crypto and has announced the relevant taxes applicable to cryptocurrency transactions. As per the agency, cryptocurrencies are commodities that can generate capital gains or even losses. In terms of taxable transactions, crypto users are taxed when trading, receiving, or sending crypto assets.
Canada Securities administrators regulate the crypto industry in the country.
Do Banks in Canada Support Crypto?
The rising adoption of crypto assets has prompted Canada-based banks to recognize these digital currencies and support their trading subject to applicable regulations. As of September 2023, there are over 3,000 Bitcoin ATMs installed by Canadian banks. Toronto hosts the most ATMs (1,043). With these ATMs, Canadians can easily convert their fiat currencies into crypto or vice versa.
Some of the well-known crypto-friendly banks in Canada include Coast Capital, Royal Bank of Canada, National Bank of Canada, ATB, and Canadian Imperial Bank of Commerce. These financial institutions allow customers to use their debit cards to buy cryptocurrencies on regulated crypto exchanges.
Two Main Ways of Buying Crypto in Canada
While in Canada, you can buy Bitcoin and other cryptocurrencies through an exchange or a broker. The former allows crypto holders to access and withdraw their funds whenever they wish, while the latter has put several restrictions on crypto transfers and withdrawals.
Here is how you can buy crypto in Canada through a broker:
Step 1: Create an Account With the Broker
Once you pick your preferred broker, the next step will require you to register an account by providing your phone number and a working email. But to start buying some crypto using the account, you will need to verify it by submitting government-issued documents as requested.
Step 2: Deposit Funds to Your Newly Created Account
After verifying the account, you will be able to access your broker’s features, such as deposit and withdrawal. To add money to your account, you can use any of the multiple payment methods brokers support. The most common options include PayPal, credit/debit cards, and wire transfers.
Step 3: Purchase Crypto
You now have funds in your account. So, it is time to buy your favorite crypto. All you have to do is place an order, and the broker will execute it for you. One major drawback of brokers is that their crypto offering is limited.
That said, if you cannot find the crypto asset you want to buy, you can consider getting it from a crypto exchange by following the steps below.
How to Buy Crypto on an Exchange When in Canada
Step 1: Select a Reputable Crypto Exchange
For a smooth trading experience, you need a trusted crypto exchange. There are a number of reputable trading platforms you can use to buy crypto in Canada. They include Coinberry, Crypto.com, Bitbuy, Coinbase, and Kraken.
Step 2: Register an Account
The procedure of creating a trading account with a crypto exchange is similar to that adopted by brokers, although you may be required to provide a passport-size photo of yourself.
Step 3: Deposit Fiat and Purchase Crypto
Once your account is verified, you can go ahead and make a fiat deposit using your debit/credit card or wire transfers. After the money reaches your trading account, go to the spot market, select the crypto you wish to purchase, and place a buy order.
The process of purchasing crypto assets in Canada is simple. With a verified account, you can own a digital currency within minutes. However, you should understand all the inherent risks related to cryptocurrencies before buying any.