Canada’s crypto regulation journey: where we’ve been, where we’re headed

In 2021, Canadian regulators continued clarifying how securities law requirements apply to crypto asset trading platforms. The message was clear: if a platform offers trading in crypto assets or crypto contracts that fall under securities or derivatives laws, it cannot treat itself as outside the financial system.

At that point, crypto platforms were no longer being viewed only as technology companies or offshore marketplaces. They were increasingly being treated as financial platforms with obligations to clients, regulators, and the broader market.

For users, this required asking, “Who is accountable for the platform I am using?”

What Ndax did: Ndax completed a SOC 2 Type II audit, an independent review focused on controls related to security, availability, and confidentiality. That was an early signal of where the Canadian market was heading: more structure, more verification, and less reliance on broad marketing claims.

Following the major crypto failures of 2022, Canadian regulators moved in 2023 to strengthen expectations for crypto trading platforms operating in Canada. Canada’s regulators responded by strengthening expectations for crypto trading platforms operating in the country. The focus moved toward custody, segregation of client assets, restrictions on margin and leverage for Canadian clients, and clearer conditions around value-referenced crypto assets, including stablecoin-like products.

Many called this the start of an “anti-crypto” stance. But in reality, it was a response to a basic reality: when platforms hold client assets, the operating model that governs them is extremely important.

A platform being popular globally (we won’t name names) does not mean it meets Canadian expectations around custody, disclosure, or oversight.

What Ndax did: In 2022, Ndax continued positioning itself as a Canadian platform willing to work with regulation instead of avoiding it. Ndax’s compliance leadership was part of the public conversation around Canadian crypto regulation.

In 2023, the pre-registration undertaking process became a major part of Canada’s crypto industry. Platforms that wanted to continue operating in Canada while pursuing registration had to make enhanced commitments. Those commitments were meant to improve investor protection while the market transitioned from a less structured environment to a more regulated one.

Some platforms, like Ndax, chose to work through that process. Other platforms, like Binance, left.

That period showed that access alone is not enough. Platforms needed to demonstrate how they handled client assets, how they managed risk, how they approached compliance, and whether they were willing to operate inside the Canadian framework.

What Ndax did: In 2023, Ndax filed a Pre-Registration Undertaking with the Canadian Securities Administrators. Under the PRU framework, Ndax committed to enhanced investor protection measures, including safeguarding client assets, account appropriateness assessments, investment limits where required, and loss limits on user accounts. This was an important step in Ndax’s transition from being a Canadian crypto platform pursuing registration to becoming part of Canada’s more formal crypto market structure.

In 2024, Canadian regulators and the Canadian Investment Regulatory Organization made it clear that crypto asset trading platforms should prioritize applications for Investment Dealer registration and CIRO membership, depending on their business model.

That was a meaningful step. The market was moving away from a temporary restricted-dealer model and toward a more durable standard for crypto platforms that operate in Canada.

The same year, the Ontario Securities Commission published compliance review findings for registered crypto asset trading platforms. The message made it clear that registration should not be considered the finish line. Rather, it is a starting point, as ongoing compliance is just as important as regulatory approval.

What Ndax did: In 2024, Ndax became registered as an Investment Dealer, obtained CIRO membership, and was recognized as a Marketplace operating as an Alternative Trading System across Canadian provinces and territories.

Regulation was no longer just a legal requirement or a side note. It became a key part of how platforms compete. Users quickly understood that asking about regulatory status and protection is just as important as asking about costs.

What Ndax did: Ndax continued building around the regulated Canadian user experience. The platform expanded its asset lineup, lowered withdrawal fees for several assets and networks, added new CAD trading pairs, and grew its staking suite. The bigger point is that Ndax was not treating regulation as a constraint on growth.

The next stage of Canadian crypto will likely be more infrastructure-driven, with more focus on dealer registration, CIRO membership, custody standards, token due diligence, how platforms communicate risk, and more pressure on firms to prove they are not just accessible in Canada, but accountable in Canada.

What Ndax is doing now: Ndax is moving beyond retail trading alone and positioning its regulated infrastructure for financial institutions, fintechs, neobanks, asset managers, family offices, and wealth platforms. Through its white-label and API-driven models, Ndax can support regulated partners that want to offer digital asset access without building the entire trading, custody, KYC, AML, reporting, and compliance stack from scratch.

Ndax is a regulated crypto trading platform. Ndax provides an Order Execution Only service. Ndax executes clients’ instructions but does not provide investment advice. Clients decide when and what to trade.