Trail notes
- A centralized exchange holds your assets and runs an order book; a decentralized exchange lets you trade from your own wallet through smart contracts.
- Aggregators search many DEX pools to split and route your trade, adding convenience and another layer of code.
- Platforms serving Canadians, including foreign ones, must be registered with securities regulators or operating under a pre-registration undertaking.
- The CSA and CIRO expect crypto trading platforms to register as investment dealers and join CIRO.
Three ways to trade crypto
When you trade crypto-assets, you are usually using one of three kinds of service. They look similar on screen but differ in who holds your money, who checks your identity and who you can complain to if something goes wrong.
| Centralized exchange (CEX) | Decentralized exchange (DEX) | DEX aggregator | |
|---|---|---|---|
| Who holds your assets | The platform | You, in your own wallet | You, in your own wallet |
| Identity checks | Yes, as part of registration and AML rules | Usually none at the protocol level | Usually none at the protocol level |
| How trades happen | Order book run by the platform | Liquidity pools via smart contracts | Routes across several DEX pools |
| Canadian dollars in and out | Usually yes | No; you need a stablecoin or on-ramp | No |
| If something goes wrong | Platform support; regulators; possible complaints process | Usually no one to call | Usually no one to call |
None of these is automatically safer. They swap one set of risks for another. A useful way to frame the choice is to ask three questions: who can move my assets, who knows who I am, and who will answer if a trade or withdrawal goes wrong. Our CEX vs DEX comparison goes into the trade-offs in more detail.
Centralized exchanges: convenience with custody risk
A centralized exchange is a company. You open an account, verify your identity, deposit Canadian dollars and trade on its order book. The platform holds the assets on your behalf, and your balance is its record of what it owes you.
That model is familiar and convenient, but it means trusting the platform’s custody, its controls and its solvency. The key question is what happens if the platform fails. Crypto held on a platform is not a bank deposit, and CDIC does not cover cryptocurrencies, including stablecoins.
QuadrigaCX, a Canadian crypto exchange, collapsed in 2019; an Ontario Securities Commission staff review in 2020 found its founder had committed fraud. Much of today’s Canadian platform oversight focuses on custody and segregation of client assets for this reason. See platform failure risk.
CSA Staff Notice 21-332 (release dated 2023-02-22) set enhanced expectations for platforms operating under undertakings, including holding client assets with qualified custodians, segregating them, and no margin, credit or leverage for Canadian clients. In 2026-02-03 guidance, CIRO set out an interim, tiered custody framework for dealer members operating crypto platforms.
See the full infographic with notes.
Decentralized exchanges and aggregators
A decentralized exchange is a set of smart contracts. You connect your own wallet, approve a token and swap against a liquidity pool. No company holds your funds between trades, and there is usually no account or identity check at the protocol level. We explain the mechanics in DEXs and liquidity pools.
A DEX aggregator sits on top of many DEXs. It searches pools for the best combined price and may split your trade across several of them. That can reduce price impact on larger trades, but you are now also trusting the aggregator’s routing contracts and the approval you give them.
- You hold the keys, so you also carry the full risk of losing them. See seed phrase security.
- Approvals matter. A malicious or buggy contract you approve can move your tokens. See wallet approvals and signing.
- Fake tokens and fake sites are common. Confirm contract addresses and use bookmarks.
- No one to call. A mistaken trade or a scam is usually final.
Registration rules for platforms serving Canadians
In Canada, crypto trading platforms are overseen by provincial and territorial securities regulators, coordinated through the Canadian Securities Administrators (CSA).
The CSA’s platform page (last updated 2025-10-22) says crypto platforms, including crypto exchanges, must register with securities regulators, and that platforms outside Canada serving Canadians must also be registered here. Platforms seeking registration sign a pre-registration undertaking (PRU) to keep operating while their application is reviewed. In a 2024-08-06 release, the CSA and CIRO said they expect crypto trading platforms to register as investment dealers and become CIRO members. The CSA keeps a list of authorized platforms (last updated 2026-09-18).
Registered platforms also operate under terms set in their own decisions. For example, an OSC decision for one platform dated 2026-03-25 includes a $30,000 net 12-month limit for most retail clients on crypto-assets other than a short list of specified ones. That limit is a term of individual platform decisions, not a general rule, and under current decisions it does not apply in Alberta, British Columbia, Manitoba, Quebec or Saskatchewan.
Dealing in virtual currency is also a money services business activity under FINTRAC rules, which is one reason platforms ask for identity information and why transfers between platforms can carry sender and recipient details.
How to check a platform before you use it
- Search the CSA’s list of authorized crypto platforms and its list of pre-registration undertakings for the exact legal name.
- Use the CSA’s National Registration Search to confirm registration and look for disciplinary history.
- Read who holds client assets and how they are segregated.
- Check whether the platform is restricted in your province.
- Be wary of any platform that offers leverage or margin to Canadian retail clients, or pressures you to move quickly.
- Export your statements regularly; the CRA advises this in case a platform closes or stops serving Canada.
Our check a platform page walks through these searches step by step, and the platform due diligence checklist gives you a printable version.
Wherever you trade, the CRA treats selling or trading one crypto-asset for another as a disposition. Keep a record of each trade. See crypto dispositions.
Your checklist
Questions people ask
What is the difference between a CEX and a DEX?
A centralized exchange (CEX) is a company that holds your assets and matches trades on its own order book. A decentralized exchange (DEX) is a set of smart contracts you trade with directly from your own wallet.
Do crypto exchanges have to be registered in Canada?
Yes. The CSA says crypto platforms serving Canadians, including those based outside Canada, must register with securities regulators, and platforms seeking registration sign a pre-registration undertaking while they are reviewed.
How do I check if a crypto platform is authorized in Canada?
Search the CSA’s list of crypto platforms authorized to do business with Canadians and its list of pre-registration undertakings, then confirm the firm through the CSA National Registration Search.
Is the $30,000 crypto limit a Canadian law?
No. It is a term in individual platform decisions, such as an OSC decision dated 2026-03-25, applying to most retail clients and to crypto-assets other than specified ones. Under current decisions it does not apply in AB, BC, MB, QC or SK.
Sources and dates
- Crypto platforms: regulation and enforcement actions — Canadian Securities Administratorsin force
Page date 2025-10-22 · checked 2026-10-30. Platforms serving Canadians, including foreign ones, must register; operating platforms sign a pre-registration undertaking while under review. - Crypto platforms authorized to do business with Canadians — Canadian Securities Administratorsreference
Page date 2026-09-18 · checked 2026-10-30. The official list of authorized platforms, with links to each decision. - Crypto undertakings (pre-registration undertakings) — Canadian Securities Administratorsreference
Page date 2026-07-17 · checked 2026-10-30. Platforms operating under a pre-registration undertaking. - CSA and CIRO expect crypto trading platforms to prioritize investment dealer registration and CIRO membership — CSA / CIROin force
Page date 2024-08-06 · checked 2026-10-30. Crypto trading platforms are expected to register as investment dealers and join CIRO; the interim restricted-dealer approach is ending. - CSA strengthens oversight of crypto asset trading platforms (Staff Notice 21-332) — Ontario Securities Commission (CSA release)in force
Page date 2023-02-22 · checked 2026-10-30. Enhanced undertakings: custody with qualified custodians, segregation, no margin or leverage, no stablecoin purchases without CSA consent. - Director's decision — Newton Crypto Ltd. (example of platform terms) — Ontario Securities Commissionin force
Page date 2026-03-25 · checked 2026-10-30. Example terms: $30,000 net 12-month limit for most retail clients on non-specified crypto assets; not applied in AB, BC, MB, QC, SK; BTC, ETH, LTC, BCH, SOL listed as specified. - Are they registered? (National Registration Search) — Canadian Securities Administratorsreference
Page date 2026-01-13 · checked 2026-10-30. Check registration, disciplinary history and investor alerts. - CIRO issues guidance on digital asset custody for crypto-asset trading platforms — CIROin force
Page date 2026-02-03 · checked 2026-10-30. Tiered, risk-based custody framework for dealer members operating crypto platforms; effective immediately. - Money services businesses (MSBs) — FINTRACin force
No date shown on page · checked 2026-10-30. Dealing in virtual currency is an MSB activity; MSBs must register with FINTRAC. - Travel rule for electronic funds and virtual currency transfers — FINTRACin force
No date shown on page · checked 2026-10-30. Since June 1, 2021, virtual currency transfers by reporting entities must carry originator and beneficiary information. - What's covered — Canada Deposit Insurance Corporationin force
No date shown on page · checked 2026-10-30. Up to $100,000 per category per member institution; cryptocurrencies, including stablecoins, are not covered. - Understanding crypto-assets and your tax obligations — Canada Revenue Agencyin force
No date shown on page · checked 2026-10-30. Defines crypto-assets; lists dispositions (sell, trade, barter, gift, gamble) and acquisitions including mining/staking rewards. - Keeping books and records of crypto-assets for tax filing — Canada Revenue Agencyin force
Page date 2025-11-10 · checked 2026-10-30. What to record per transaction, wallet addresses, yearly balances; export platform history; keep records at least six years.
Education only. Nothing on this page is financial, investment, tax or legal advice, or a recommendation to buy, sell, stake, lend or borrow any crypto-asset. Crypto-assets can lose some or all of their value and are not covered by CDIC. Canadian rules change: check the dated sources above and talk to a qualified professional about your situation. Full disclaimer.