Is CoinEx Legal in Canada? Is CoinEx Safe?
Choosing a trustworthy cryptocurrency exchange is crucial as it directly impacts the safety and security of your digital assets. The high risk of scams in this area necessitates extreme caution from users.
Our analysts have noticed a growing interest in CoinEx services among users in the Canada. However, questions remain regarding its safety and legal status within the Canada. Traders Union experts have addressed this concern by crafting a detailed review that explores both the pros and cons of using CoinEx.
So, let us tell you if CoinEx is allowed in the Canada and if it's safe to use for trading.
Is CoinEx legal in Canada? Does it have a license?
Currently, the CoinEx is not regulated at the government level, which remains a common scenario in the cryptocurrency market. However, such platforms generally fall short compared to exchanges with Tier-1 regulation, which signifies oversight by top-tier financial authorities such as the FCA (UK), SEC (USA), or ASIC (Australia), ensuring strict compliance with security and operational standards. We compared CoinEx with two Tier-1 regulated exchanges to help you make an informed choice
| CoinEx | Bybit | MEXC | |
|---|---|---|---|
Tier-1 regulation |
No |
Yes |
No |
Government-regulated |
No |
Yes |
No |
Successful hacks |
Yes |
Yes |
No |
Cold wallet storage |
Yes |
Yes |
Yes |
Investor protection fund |
Yes |
Yes |
No |
2FA |
Yes |
Yes |
Yes |
Verification (KYC) |
Yes |
Yes |
Yes |
Open an account |
|
|
|
Short summary about the CoinEx exchange
The CoinEx exchange is a multifunctional platform that combines the functions of the cryptocurrency market and a crypto exchange. Bitcoin, Ethereum, USDT, and dozens of other cryptocurrencies and tokens are at the trader’s disposal. Assets are exchanged and traded relative to each other, and there are pairs with world currencies, the most prominent contracts are with USD. The exchange has a large trading volume, and thanks to the patented lightning-quick match engine, the company guarantees the simultaneous stability of thousands of orders, each of which is reliably protected. The site has its proprietary CET coin, which is issued daily. In addition to the web version of the trading terminal, there’s is a user-friendly mobile application. Fees are fixed and they depend on the trading level and the presence/absence of VIP status.
| 💰 Account currency: | Any |
| 🚀 Minimum deposit: | Depends on the asset and type |
| ⚖️ Leverage: | no |
| 💱 Spread: | 0.2% |
| 🔧 Instruments: | Cryptos, currencies |
| 💹 Margin Call / Stop Out: | No |
CoinEx Pros and Cons
👍 CoinEx Pros:
•large trading volumes, loads of cryptocurrencies, and tokens;
•convenient and functional mobile application;
•low fees (especially with VIP status);
•you can get the status of a market maker and an ambassador;
•legal license for digital assets;
•the company has a reserve fund;
•round-the-clock professional technical support.
👎 CoinEx Cons:
•affiliate program for ambassadors only;
•absence of investment programs.
Rules and Regulation
Cryptocurrency Regulation in Canada
Cryptocurrency regulation in Canada is controlled by various regulatory bodies to ensure compliance and protect investors. The primary regulatory authority is the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), which monitors cryptocurrency exchanges for compliance with anti-money laundering (AML) and know your client (KYC) regulations.
Licensing Demands
Cryptocurrency exchanges that operate in Canada are required to register with FINTRAC and comply with AML/KYC regulations. Additionally, some provinces may require exchanges to obtain additional licenses or registrations, depending on their specific activities.
Investor Protection
Investor protection in the cryptocurrency market is a priority in Canada. The Canadian Securities Administrators (CSA) issues warnings and guidelines to educate investors about the risks associated with cryptocurrency investments. Moreover, the Ombudsman for Banking Services and Investments (OBSI) offers recourse for investors in case of disputes with cryptocurrency service providers.
Taxation
Profits from trading cryptocurrencies are subject to taxation in Canada. The Canada Revenue Agency (CRA) treats cryptocurrencies as commodities for tax purposes. Therefore, capital gains tax applies to cryptocurrency transactions, and traders are required to report their gains as income. Tax rates depend on various factors, including the individual's income bracket and the frequency of trading.
Do I recommend using CoinEx in the Canada?
The CoinEx cryptocurrency exchange can be chosen by clients from Canada, although there are certain nuances. The exchange does not have a financial license, but that is rather because the financial regulator of Canada does not issue the licenses to crypto exchanges in general. There have been certain security-related incidents, but those very singular cases. The reputation of the exchange can be considered standard.
FAQ
Can I work with crypto exchanges considering that they don’t have a license in Canada?
The fact that a crypto exchange does not have a license doesn’t mean that traders from Canada will have problems while working with it. Cryptocurrency exchanges are not subject to licensing in many countries, while there are many exchanges with good reputation. Assess the available information about the exchange and check its reputation.
What security methods for account protection do crypto exchanges employ?
Cryptocurrency exchanges may offer various security methods. These include the two-factor authentication, first and foremost, and also such methods as a security question, additional passwords, etc.
Can an exchange that has had a security-related incident in the past be trusted?
You need to check whether such incidents were regular. If it was one episode several years ago, while the reputation of the exchange is good, you can work with such an exchange.
Should I work with an exchange if I have doubts about its reputation?
No. Always choose the cryptocurrency exchanges that have a good reputation.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.