As more Canadians choose to invest in cryptocurrencies like BTC and Ether instead of sticking to traditional stocks or savings accounts, what began as a trend among tech-lovers is becoming part of everyday investing.
The Bank of Canada’s Bitcoin Omnibus Survey (BTCOS), conducted in late 2023 and published on March 14, indicates ownership of the digital currency stands at about a tenth of the population of the North American country. This is concentrated among younger, educated men with higher incomes, but large investment firms and pension funds are also getting involved.
Crypto platforms — both Canadian and international — are expanding throughout the country. And Canada’s government is building clearer regulations to support this fast-growing market.
Today Disruption Banking looks at who is investing in crypto in Canada, the key apps and exchanges they use, and how regulations there are shaping the future of digital money.
Crypto Ownership Surges in Canada
Canada’s cryptocurrency market has surged in recent years, driven by enthusiastic retail investors and a growing tendency of institutions to embrace it.
In the Canadian Securities Administrators’ (CSA) 2024 Investor Index, crypto assets made the list of the six most commonly held investment types, owned by roughly 18% of Canadian investors. The breakdown shows a generational gap.
About a third of investors (33%) under 35 hold crypto, versus 26% for ages 35-44, and 4% for those aged 65 and over. Younger Canadians now see digital currencies as part of a diversified portfolio — outranking traditional bonds, income trusts, and options in popularity.
Crypto in Canada: a Young Person’s Game?
Millennials and Gen Z, already digital-native and open to alternative assets, account for the bulk of crypto holders. According to MoonPay data, the 20-24 age group alone accounts for 21% of crypto transactions in Canada. Men disproportionately hold crypto, though that gender gap narrows among seasoned investors. Most Canadian crypto-users live in urban centers. Ontario supplies about 42% of the country’s trading volume, followed by Quebec (21%) and British Columbia (14%).
Canada provincial crypto ownership in 2024. Source: MoonPay.
Globally, Canada’s 2025 crypto-user penetration rate is estimated to be around 30%, with projections reaching approximately 32% by 2028 (close to 13 million users), according to Statista. This broad-based interest has been aided by easy access to crypto through major brokerages and apps.
Top Crypto Platforms Driving Adoption in Canada
Retail uptake has been fueled by both homegrown and international platforms. Canadian innovators like Wealthsimple Crypto and Bitbuy lead the domestic on-ramps, offering user-friendly apps and local support.
Other licensed Canadian exchanges include NDAX, CoinSmart/Netcoins, Shakepay, Newton Crypto, Coinsquare, and VirgoCX — each primarily serving Canadian accounts with low fees and Interac e-transfer support. As at April this year, Bitbuy alone had processed over $7 billion in trades for 900,000 users.
On the global side, giants like Coinbase, Kraken, Crypto.com, and Gemini also serve Canadian traders. Coinbase has opened a Canadian subsidiary and expanded to Vancouver in 2024, praising Canada’s “regulation by engagement” approach. Kraken (via Payward) and Crypto.com (Foris DAX) also hold approvals to operate in Canada. By contrast, unregistered exchanges like KuCoin, Poloniex, and CoinEx are banned for non-compliance.
Canadians can buy Bitcoin, Ethereum, and other coins through familiar apps — often in just a few taps. Newer services also let users earn yield by staking, with platforms like Wealthsimple offering up to 10% annual percentage yield (APY) on ETH.
Institutional Investors All In
A 2023 KPMG/CAASA survey found 39% of Canadian institutional investors had crypto exposure, up from 29% in 2021. Of those, three-quarters hold crypto directly, while half do so via exchange traded funds (ETFs). Two-thirds invest through crypto-related public equities, and 42% through crypto derivatives (up from 14%). Reinforcing this trend is the launch of 13 crypto ETFs in Canada in April, which indicates growing institutional interest.
Crypto is increasingly seen as an alternative asset class and inflation hedge. Tightening fiscal policy and public debt are driving demand for non-traditional stores of value. Traditional asset managers are exploring crypto offerings in the face of regulations introduced this year by the Office of Superintendent of Financial Institutions (OSFI).
Canada: a Crypto Destination
Fidelity Digital Assets Canada now offers custody and broker-dealer services. Wealth managers and fund companies have launched crypto-focused funds — Canada’s first Bitcoin ETF launched in 2021.
Following U.S. regulatory crackdowns, crypto firms are choosing Canada for expansion. Coinbase has scaled its Canadian operations, citing the country’s regulatory engagement. Analysts say Canada is betting that regulatory clarity will attract more institutional capital.
Solid Regulations Offer Balanced Approach
Regulation can both constrain and legitimize. Canada’s regulators have taken a pragmatic path. OSFI announced capital/liquidity rules in February, and these will come into effect as of fiscal Q1 November 2025 to January 2026.
On the securities side, provinces require crypto-trading platforms to register as investment dealers. Rules were codified in 2025 when the Canadian Securities Administrators (CSA) laid out tough requirements for crypto-trading platforms. These amendments define eligible crypto assets, set custody standards, limit risk, and clarify disclosures.
The Canadian Investment Regulatory Organization (CIRO) now oversees platform registration, including CoinSmart, Netcoins, and others.
Tax Uncertainty the Only Cloud
Canada is aligning with global standards. ISDA extended its digital reporting code to cover CSA’s revised crypto derivatives rules, due to be implemented on July 25, 2025, according to a Disruption Banking report. Canadian firms will report using Harmonized XML protocols, streamlining compliance and reducing errors.
Crypto is treated as property for tax purposes. Authorities require gains to be reported, yet the MoonPay survey found 33% of crypto holders were unsure how. Still, regulation has bolstered confidence: provincial registration and custodial standards offer security to both retail and institutional investors. As chair of both the CSA and Alberta Securities Commission (ASC), Stan Magidson, puts it, Canada’s rules provide “guardrails” without stifling innovation.
The stats on Canadian taxes. Source: MoonPay
Crypto Future Viewed With Clarity
Cryptocurrency has gone mainstream in Canada. Millions of Canadians — especially younger ones — invest in Bitcoin, Ethereum, and other tokens through easy-to-use apps. Institutions and fund managers are integrating crypto as a maturing asset class.
This surge is backed by Canada’s regulatory clarity and robust infrastructure: local exchanges are growing, global players are investing, and compliance standards are giving the market credibility.
It’s clear that crypto is no longer an alternative. It is well on its way to becoming a vital part of Canada’s financial system. If current trends continue, adoption in Canada will keep rising, driven by further innovation under a regulatory regime that balances risk with access.
#Canada #cryptocurrency #Bitcoin
Author: Ayanfe Fakunle
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organizations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
See Also:
The Rise in Popularity of Crypto in the Netherlands | Disruption Banking
The Rise in Popularity of Crypto in Malaysia | Disruption Banking
Swizterland and Crypto: a Match Made in Banking Heaven? | Disruption Banking
