In early 2025, Canada intensified its regulatory oversight of cryptocurrency trading platforms, marking a pivotal moment for digital asset providers operating in the country. The Canadian Securities Administrators (CSA) announced on February 22 that all crypto asset trading platforms (CTPs) must submit enhanced pre-registration undertakings (PRUs) within 30 days to continue serving Canadian users. This move was driven by growing concerns over investor protection following high-profile collapses like Voyager, Celsius, and FTX.
The new requirements are stringent: platforms must ensure strict segregation and custody of client assets, refrain from pledging or rehypothecating user-held crypto, and cease offering margin, credit, or leveraged trading to Canadian clients. Additionally, no unregistered CTP can allow users to buy or deposit stablecoins—or trade proprietary token-based contracts—without prior written approval from the CSA.
These regulations have forced crypto exchanges to make a clear choice: comply or exit. As of April 2025, the landscape has reshaped dramatically, with major players taking divergent paths.
Platforms Committed to Compliance and the Canadian Market
Several leading global exchanges have chosen to stay, signaling long-term confidence in Canada’s crypto ecosystem by submitting their PRUs and aligning with regulatory expectations.
Coinbase Reinforces Its Canadian Presence
On March 30, Coinbase confirmed that Coinbase Canada had signed an enhanced pre-registration undertaking with the CSA on March 24. This commitment outlines how the platform will safeguard user funds, ensure compliance, and support responsible innovation. The company also appointed Lucas Matheson, a former Shopify executive, as its new Director for Canada.
Coinbase has long invested in the region, operating a tech hub in Toronto with over 200 engineers. The exchange emphasized its ongoing collaboration with policymakers to help shape a robust regulatory framework for digital assets in Canada.
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Kraken Affirms Its Commitment to Canadian Users
Kraken followed suit, formally submitting its PRU to the Ontario Securities Commission (OSC). With more than a decade of service in Canada and over 250 local team members, Kraken views the region as “critical” to its mission, according to COO David Ripley.
The platform has suspended certain high-risk products like staking rewards and leveraged trading for Canadian users but remains fully operational under the new rules. Its proactive engagement with regulators reflects a strategy of sustainable growth through compliance.
Binance Submits Multi-Jurisdictional Commitments
Binance Canada also submitted its pre-registration undertakings to multiple provincial regulators. The filing details Binance’s approach to asset custody, user protection, compliance protocols, and operational transparency. Notably, it includes a proposed timeline for launching a new, locally tailored trading platform designed specifically for Canadian users.
This strategic pivot underscores Binance’s intent to maintain a presence while adapting to domestic standards—a shift from its earlier global-first expansion model.
Gemini Joins the Compliance Wave
On April 12, Gemini announced it had submitted its PRU to the OSC, reaffirming its dedication to expanding in Canada. Known for its focus on security and institutional-grade infrastructure, Gemini is positioning itself as a trusted partner in a maturing regulatory environment.
Other platforms that have submitted PRUs include Crypto.com, DigiFinex, ByteX, CatalX, Satstreet, Uphold, and Shakepay, indicating a broad trend toward formalization among compliant operators.
Platforms Exiting—For Now
While some exchanges are doubling down, others have opted to pause operations in Canada amid the regulatory uncertainty.
OKX Exits Temporarily Amid Regulatory Review
OKX notified Canadian users in late March that it would wind down its services by mid-2025. Withdrawals remained available until June 22, after which accounts were restricted. Users were urged to transfer their crypto assets or fiat funds to external wallets or bank accounts.
Importantly, OKX labeled this move as temporary, stating it is actively working with Canadian regulators to address compliance challenges. The door remains open for a future return if regulatory clarity improves.
dYdX Phases Out Canadian Access
The decentralized derivatives exchange dYdX began restricting access for Canadian users in April. Starting April 7 (UTC), it stopped onboarding new users from Canada. One week later, all existing users were placed into close-only mode, allowing them to exit positions but not open new ones.
Despite its decentralized structure, dYdX cited regulatory pressure as the reason for these changes. However, the team left room for optimism: “Should the regulatory environment evolve favorably, we may reconsider offering services in Canada.”
Paxos Ends Support for Canadian Clients
Paxos, known for issuing regulated stablecoins like USDP and PYUSD, emailed Canadian customers on April 12 informing them that it would no longer support users in the country. Accounts with zero balances were scheduled for deactivation by May 9.
A spokesperson clarified that Paxos is refocusing on enterprise clients and may reassess its Canadian strategy based on future demand and regulatory developments.
Why Canada Matters in the Global Crypto Landscape
Despite the short-term disruption, Canada remains a strategically important market. According to a 2022 OSC survey:
- 13% of Canadians already own cryptocurrency
- 38% believe digital assets play a key role in financial services
- 31% plan to buy crypto within the next 12 months
- Among holders, 27% trade at least weekly
These figures reveal strong public interest and adoption potential—factors that keep global platforms engaged even during regulatory transitions.
Frequently Asked Questions (FAQ)
Q: Why did the CSA introduce stricter rules for crypto platforms?
A: In response to major exchange failures like FTX and Celsius, the CSA prioritized investor protection by mandating stronger custody practices, banning risky activities like leverage trading, and requiring transparency from unregistered platforms.
Q: Can Canadian users still trade crypto after these changes?
A: Yes—users on compliant platforms like Coinbase, Kraken, Binance Canada, and Gemini can continue trading under revised terms. Some features (e.g., staking or margin) may be limited.
Q: Are decentralized platforms immune to these regulations?
A: Not necessarily. Even decentralized exchanges like dYdX have restricted access due to legal risks associated with serving regulated jurisdictions without compliance frameworks.
Q: Is leaving Canada permanent for exchanges like OKX or Paxos?
A: No—both companies described their exits as temporary. They’re working toward future re-entry once regulatory pathways become clearer.
Q: What should Canadian investors do if their platform shuts down?
A: Act promptly: withdraw funds before deadlines, transfer assets to self-custody wallets or compliant exchanges, and monitor official communications for updates.
Q: Will more platforms leave Canada in the future?
A: It depends on how quickly a formal registration process is established. The current PRU system is transitional; long-term participation hinges on final regulatory clarity.
The Road Ahead: Regulation as a Gateway to Growth
Canada’s crypto crackdown isn’t about shutting down innovation—it’s about channeling it responsibly. By setting clear expectations, the CSA aims to protect consumers while fostering a sustainable digital asset economy.
Exchanges that adapt are positioning themselves as leaders in regulated crypto markets. Those that exit temporarily may return stronger when compliance frameworks stabilize. Either way, the message is clear: the era of unregulated crypto operations in Canada is over.
For investors, this means greater security, transparency, and long-term confidence in the platforms they use.
As Canada continues shaping its digital asset policy, one thing is certain—the country will remain a key player in the evolution of trustworthy, user-protected cryptocurrency markets worldwide.
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