Summary: The easiest and cheapest way to start buying Bitcoin in Canada is via the Bitbuy Exchange. Based in Toronto Ontario, Bitbuy are the largest and most trusted crypto exchange in Canada.
Yes, buying Bitcoin is legal in Canada and the Canada Revenue Agency has recently provided clarity and classified Bitcoin as a commodity, stating that the use of Bitcoin to pay for goods and services is to be considered a barter transaction.
Canada’s tax laws and rules, such as the Income Tax Act, also apply to Bitcoin/crypto transactions.
Buying digital assets in Canada is much easier than many people think. All you need to do is select a trusted exchange in Canada, create an account, deposit Canadian Dollars (CAD) and you are ready to buy.
The table below provides a high level overview of the best Bitcoin exchanges that are based in Canada.
Bitbuy is the leading cryptocurrency exchange based in Canada. This platform simplifies trading of digital assets for all Canadian residents through their retail-friendly exchange, and convenient over-the-counter (OTC) services for institutional investors. They are a great way to buy Bitcoin with an RBC Bank Account or TD Trust Account.
Their fee's are the most competitive in the industry, and they also offer a great selection of cryptocurrencies to buy, sell and trade.
Coinsquare is the largest and longest running crypto and Bitcoin exchange in Canada. It enables users to easily buy and sell Bitcoin, Ethereum and other cryptocurrencies.
Their platform offers many different ways to trade crypto including an instant buy feature, traditional order book and OTC for institutional investors. Learn more about Coinsquare Fees.
Binance Canada is the Canadian arm of the Binance global cryptocurrency exchange. They are the worlds largest trading platform that boast a wide range of features including spot trading, leverage trading, crypto lending and more.
The Binance Canada exchange accepts Canadian Dollar (CAD) deposits via Interac e-Transfer or a bank wire.
Shakepay is a new and highly regarded Bitcoin and cryptocurrency exchange based in Canada. They have an easy to use web app and iOS/Android app that enables users to buy Bitcoin and other cryptocurrencies within minutes.
On Shakepay, users can cashin and cashout their cryptocurrencies with no fees, instantly. They offer Interac e-Transfer, EFT & Wire Transfer for deposits and withdrawals.
Coinberry is an exchange based in Canada that offers a sleek and simple user interface on both their web and mobile app that enables users to buy, sell and trade Bitcoin, Ethereum and more.
CoinField is the best known Bitcoin and cryptocurrency exchange based in the Cayman Islands. They offer an end to end service for all kinds of crypto users including an easy to use exchange with an iOS and Android app, as well as a market leading OTC desk for institutional and high net worth investors.
CoinField are operational across 193 different countries and offer a wide range of payment methods and fiats to onboard into the digital asset space.
The Canadian Revenue Agency (CRA) has recently declared that Bitcoin and other cryptocurrencies are taxable as commodities as opposed to traditional currencies. As discussed above, this means that Bitcoin transactions are viewed as barter transactions.
With respect to profits from trading or selling Bitcoin in Canada, this is considered capital gains. This is largely due to the fact that only a part of that profit will be taxable at the applicable rate. Meaning you will only be taxed the amount that you profited from the transaction, for example:
1. John buys 1 Bitcoin in Canada at $10,000 CAD
2. John then sells that same Bitcoin for $12,000 CAD
3. The taxable amount is the $2,000 profit on the 1 Bitcoin
Quebec has been popularised as a great area to mine Bitcoin in Canada due to its inexpensive and largely renewable sources of power. For Bitcoin mining to be effective, it essentially requires the most energy at the lowest cost and this is why Bitcoin mining companies have started to build infrastructure in Quebec. The most popular source of renewable energy in Quebec at the moment is hydropower.
If you are a high-net-worth individual or institution looking to buy Bitcoin shares (over $100,000 CAD) - we recommend you check out a Bitcoin over-the-counter (OTC) desk in Canada. Bitcoin OTC desks offer a personalized and secure service that allows you to buy over $100,000 CAD worth of Bitcoin without worrying about getting a bad price.
Buy Bitcoin Finder recommends Coinsquare as the go to OTC desk for Bitcoin in Canada. They offer fast settlement, personalised service, secure gateways to foreign currencies and much more. You can also purchase bitcoin using TD Bank in Canada or Scotiabank with Coinsquare.
Learn more about the Bitcoin price in Canadian dollars here: BTC Price CAD
Or if you are interested in Ethereum, you can learn more about the price of ETH in Canadian dollars here: Ethereum price CAD