Summary
Can I Buy Tether (USDT) in Canada?
Yes, you can easily buy Tether (USDT) in Canada through centralized exchanges, using either your debit/credit card or third-party payment methods like Google Pay. In this article, we highlight exchanges that allow purchases in Canadian Dollars (CAD) and are registered with FINTRAC as MSBs to ensure the safety of your funds.
How to Buy Tether (USDT) in Canada using Crypto Exchanges
After evaluating multiple exchanges, we found BYDFi to be the most viable option for buying Tether (USDT) in Canada. This is due to its compliance with regulatory requirements, support for fiat purchases, security features, and the range of cryptocurrencies and services it offers to Canadian users.
BYDFi
Established in 2019 by Michael Hung, BYDFi is a registered MSB under FINTRAC, adhering to AML and KYC regulations set by the authorities. BYDFi allows Canadian users to buy Tether (USDT) by depositing CAD into their accounts.
With over 418 cryptocurrencies and 187 futures contracts available, it offers Canadians diverse trading options in both spot and futures markets. Known for its competitive fees and high leverage of up to 200x, BYDFi has gained popularity, with over 4 million users leveraging its innovative features like grid and martingale trading bots.
Buy Tether in Canada
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1First, sign up on BYDFi to create an account by visiting their website.
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2Canadian users need to complete the KYC process to buy Tether (USDT) on BYDFi.
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3Once registered, hover over the Buy Crypto button in the toolbar and click on it.
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4In the Spend field, select CAD as the currency and enter the amount you wish to spend. The corresponding amount of USDT will be displayed in the Receive field below. Then, click on Purchase with CAD.
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5You will be directed to a window where you'll receive quotes from third-party payment options. Select the option with the best rates and complete your purchase.
Best Alternatives to BYDFi for Buying Tether
It’s always smart to have a backup plan. By maintaining an extra account, you ensure you’re not left stranded if one exchange goes down or faces issues. Plus, different exchanges offer varying features and services that might better suit your needs. So, if you’re looking for alternatives to BYDFi for buying Tether (USDT) in Canada, here are some great options to consider:
Bitget
Bitget, established in 2018, is a popular exchange offering Canadian users the ability to buy Tether (USDT) by depositing CAD. The platform supports over 871 cryptocurrencies and 246 futures contracts, with leverage options up to 125x. Bitget also provides advanced tools like grid and martingale trading bots, along with copy trading features. It’s a solid choice for those looking for a versatile and beginner-friendly platform to buy and trade Tether in Canada.
Bitbuy
Bitbuy, founded in 2016 and based in Toronto, is one of Canada’s leading cryptocurrency exchanges. It’s an excellent option for those in Ontario, as it complies with the Ontario Securities Commission (OSC), unlike many other top exchanges. Bitbuy offers around 25 cryptocurrencies, including Tether (USDT), with low fees ranging from 0% to 2%, making it a reliable choice for Canadian crypto traders.
Canada Dollar (USD) to USDT Fees
When buying Tether (USDT) with Canadian Dollar (CAD), exchanges generally don’t impose additional fees. However, you may be charged processing fees by your bank or third-party payment processors (such as credit card companies or payment services like Google Pay). These fees can vary depending on the payment method you choose.
Is Tether (USDT) Legal in Canada?
Yes, Tether (USDT) is legal in Canada. It can be bought, sold, and traded on various cryptocurrency exchanges, as long as the platform complies with Canadian regulations. However, exchanges are required to adhere to anti-money laundering (AML) and know-your-customer (KYC) regulations set by Canadian regulatory bodies like FINTRAC. Users, on the other hand, must comply with these requirements when using exchanges to buy, sell, or trade Tether (USDT) in Canada.
Bottomline
For Canadian users, it’s now easier than ever to buy Tether (USDT) in Canada, thanks to relaxed regulations. However, regulatory pressures still exist, as seen in the recent issues Binance faced in the U.S., which also impacted its operations in Canada. To buy Tether (USDT) in Canada, it’s essential to use an exchange that is registered and adheres to strict regulatory standards.
Users must comply with anti-money laundering (AML) and know-your-customer (KYC) requirements, and be aware of tax implications, especially when it comes to capital gains. While buying Tether is more accessible, staying compliant is key to a smooth and secure experience.
FAQs
1. Can I use Canadian Dollars (CAD) to buy USDT on every exchange?
Not all exchanges support direct CAD to USDT purchases. Platforms like BYDFi, Bitget, and Bitbuy offer this option, but some international exchanges may require you to convert CAD to USD first, which may incur additional fees.
2. What are the tax implications of buying, selling, or holding Tether (USDT) in Canada?
In Canada, buying USDT is not a taxable event. However, selling or trading USDT can trigger capital gains tax. Gains are calculated as the difference between the purchase price (adjusted cost base) and the selling price. It’s important to maintain accurate records of all transactions for tax reporting.
3. Are there any risks of using unregulated exchanges to buy USDT in Canada?
Yes, using unregulated exchanges can expose you to security risks, lack of recourse in case of disputes, and potential regulatory penalties. Always use exchanges registered with FINTRAC to ensure compliance and safety.
4. Can I use a prepaid card to buy Tether (USDT) in Canada?
Yes, some exchanges support prepaid cards for buying USDT. Ensure the card is compatible with the platform, and be aware of any additional fees associated with prepaid card transactions.
