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North America / Verified 2026-07-14

Is crypto legal in Canada?

Legal

Cryptocurrency is legal to buy, sell, hold, and mine in Canada — it is not legal tender, but there is no prohibition on use. Exchanges and crypto dealers are regulated as money services businesses (MSBs) under FINTRAC/PCMLTFA, required since June 2020.

Tax treatment

Commodity / capital property (not legal tender, not a security by default)

CRA treats crypto as a commodity (capital property), not currency. Selling, trading, or spending it is a disposition: gains are taxed as capital gains (50% of the gain included in taxable income at your marginal rate) unless the activity resembles a business or frequent trading, in which case 100% is taxed as business income.

Report capital gains/losses on Schedule 3; file T1135 Foreign Income Verification if cost basis of crypto held on foreign exchanges exceeds CAD $100,000. No crypto-specific tax form exists — general capital property rules apply.

Can banks handle crypto here?

No nationwide ban, but bank-by-bank friction. RBC prohibits crypto purchases on RBC credit cards outright. TD and Scotiabank generally allow e-Transfer/debit funding to Canadian FINTRAC-registered exchanges but block or flag wires to many offshore platforms, sometimes requiring proof of fund provenance.

Buying and selling crypto in Canada

FINTRAC-registered Canadian exchanges (e.g., Bitbuy, NDAX, Newton, Coinsquare, Shakepay) are the standard funding path via Interac e-Transfer/EFT; direct credit-card crypto purchases are increasingly blocked bank-side.

Worth knowing

The 2024-budget proposal to raise the capital gains inclusion rate to 66.67% (on gains over $250k/year) was deferred, then formally cancelled on March 21, 2025 by PM Carney. The inclusion rate remains a flat 50% for all individual capital gains as of mid-2026 — many crypto-tax content sites still incorrectly describe the cancelled tiered rate as current law; do not repeat that figure.

Authority sources used

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FAQ

Is Bitcoin legal in Canada?

Yes. There is no prohibition on buying, holding, or using cryptocurrency in Canada. It is not legal tender, so no business has to accept it, but there is no ban on individual ownership or use.

Did Canada's capital gains tax on crypto increase to 66.67%?

No. A 2024 budget proposal to raise the inclusion rate to 66.67% on gains over $250,000/year was formally cancelled by Prime Minister Carney on March 21, 2025. The rate remains a flat 50% inclusion for individuals as of mid-2026, despite some outdated crypto-tax content still citing the cancelled figure.