Canada: crypto & digital assets regulation

Regulated

Canada implements multi-faceted regulatory framework for crypto assets and services

Last updated:: 2026-07-12

Canada employs a multi-agency approach to regulate crypto assets and services, primarily through the Canadian Securities Administrators (CSA) for securities, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for anti-money laundering and anti-terrorist financing (AML/ATF), and the Office of the Superintendent of Financial Institutions (OSFI) for prudential oversight of federally regulated financial institutions.

Crypto-asset trading platforms are subject to securities legislation, requiring registration as dealers or marketplace platforms, while entities operating as money services businesses (MSBs) must register with FINTRAC under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. Investment funds dealing with crypto assets are regulated under amendments to Regulation 81-102 respecting Investment Funds, which now formally incorporate crypto assets into the framework.

Key restrictions include limiting direct crypto investments for public funds to alternative mutual funds and non-redeemable funds, mandating offline custody for private keys, and prohibiting money market funds from crypto exposure. Trading platforms must also comply with specific terms for value-referenced crypto assets and adhere to strict advertising guidelines. Federally regulated financial institutions face specific capital and liquidity treatment guidelines for crypto-asset exposures.

The regulatory landscape is continuously evolving, with ongoing amendments to integrate crypto assets into existing frameworks, active enforcement of AML/ATF regulations, and workshops exploring future applications of tokenization in capital markets.

Who regulates

Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
Responsible for enforcing anti-money laundering and anti-terrorist financing (AML/ATF) regulations, including the registration of money services businesses (MSBs) and imposing administrative monetary penalties for non-compliance.
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Canadian Securities Administrators (CSA)
An umbrella organization for provincial and territorial securities regulators, responsible for regulating crypto-asset trading platforms, investment funds, and issuing guidance on the application of securities legislation to crypto assets.
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Autorité des marchés financiers (AMF)
Quebec's securities regulator and a member of the CSA, actively involved in amending Regulation 81-102 to integrate crypto assets into Quebec's securities framework.
^{[5][6][7][8][9][10][11]}
Office of the Superintendent of Financial Institutions (OSFI)
Establishes regulatory capital and liquidity treatment for crypto-asset exposures for federally regulated banks, trust companies, loan companies, foreign bank branches, and insurers.
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Investment Industry Regulatory Organization of Canada (IIROC)
Jointly issued guidance with the CSA on advertising, marketing, and compliance for crypto-trading platforms.
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Core laws & rules

Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)
This Act forms the basis for FINTRAC's oversight, requiring money services businesses (MSBs) to register and comply with AML/ATF reporting obligations.
^[1][2][3]
Regulation 81-102 respecting Investment Funds
This regulation, frequently amended by Canadian securities regulators, establishes the framework for investment funds, now explicitly defining and regulating crypto assets within alternative mutual funds and non-redeemable funds.
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Securities legislation
General securities legislation applies to crypto-asset trading platforms and certain crypto assets deemed securities, requiring compliance with registration and operational requirements.
^[14][15][16]

Licensing & registration

Foreign Money Services Business (MSB) Registration
Entities operating as foreign money services businesses in Canada, including those dealing with virtual currency, must register with FINTRAC and comply with AML/ATF regulations.
^[2][3]
Crypto-Asset Trading Platforms (CATPs)
Crypto-asset trading platforms are subject to securities legislation and must register as either a Dealer or Marketplace Platform, adhering to specific regulatory requirements.
^[15][16]
Public Crypto Asset Investment Funds
Investment funds that are reporting issuers and invest in crypto assets are regulated under Regulation 81-102, with specific conditions for their operation and investment permissions.
^[13][7][8]

Restrictions & warnings

Direct investments in crypto assets by public investment funds are restricted to alternative mutual funds and non-redeemable funds, with a mandate for private cryptographic keys to be held in offline storage.
^[7][8][9]
Money market funds are prohibited from investing in crypto assets.
^[9]
Registered crypto asset trading platforms were required to cease offering non-compliant value-referenced crypto assets by December 29, 2023.
^[12]
Crypto-trading platforms are prohibited from making false or misleading statements in advertising and marketing, and are warned against gambling-like promotions.
^[14]
Federally regulated banks, trust companies, loan companies, foreign bank branches, and insurers are subject to OSFI guidelines for capital and liquidity treatment of crypto-asset exposures, including a simplified approach that deducts all crypto-asset exposures from common equity Tier 1 capital.
^[17][18]

Direction of travel

The CSA is actively engaging with stakeholders through workshops to gather input on tokenization and its applications in capital markets, indicating ongoing development and potential future regulatory adjustments.
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There is a continued direction towards integrating crypto assets into existing securities and prudential frameworks, as evidenced by recent amendments to Regulation 81-102 and OSFI's new capital and liquidity guidelines.
^{[5][6][7][8][17][18]}
FINTRAC continues to actively enforce AML/ATF regulations, imposing significant administrative monetary penalties on non-compliant entities, signaling ongoing vigilance in this area.
^[1][2][3]

Sources

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This guide is compiled automatically from 18 primary-source documents published by Canada's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.