Is KuCoin Legal in Canada? Is KuCoin 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 KuCoin 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 KuCoin.
So, let us tell you if KuCoin is allowed in the Canada and if it's safe to use for trading.
Is KuCoin legal in Canada? Does it have a license?
Currently, the KuCoin 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 KuCoin with two Tier-1 regulated exchanges to help you make an informed choice
| KuCoin | 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 KuCoin exchange
The KuCoin crypto exchange is a platform for exchanging and trading cryptocurrencies, spots, margins, and futures. The list of the exchange’s trading instruments includes dozens of cryptocurrencies such as Bitcoin, Ethereum, Tezer, etc. This crypto exchange offers a user-friendly trading terminal and there are a web and a mobile version for Android and iOS devices. The terminal contains basic analytics, charts, and indicators. There’s a possibility to replenish the account balance from debit cards, cryptocurrency, and electronic wallets. These methods are also available for withdrawal. In addition to the affiliate program (payments for referrals), the site offers unique contests with cash prizes called "Futures Battle".
| 💰 Account currency: | BTC |
| 🚀 Minimum deposit: | From $1 |
| ⚖️ Leverage: | Up to 1:100 |
| 💱 Spread: | 0.01% |
| 🔧 Instruments: | Currencies, cryptos |
| 💹 Margin Call / Stop Out: | No |
KuCoin Pros and Cons
👍 KuCoin Pros:
•he most popular cryptocurrencies and tokens are presented on the exchange;
•cryptocurrency exchange, spot, margin, and futures trading are offered;
•leverage up to x100 in the professional version;
•large trading volumes;
•a detailed guide for novice crypto traders;
•adaptive calculation of the commission depending on the trading volume;
•you can place your token on the exchange.
👎 KuCoin Cons:
•crypto exchange’s incomplete localization;
•lack 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 KuCoin in the Canada?
The KuCoin 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.