Yes it is legal but banking is illegal. Companies dealing in digital currencies have to register with the Financial Transactions and Reports Analysis Centre of Canada (Fintrac), enforce compliance programs, keep the required records, file suspicious or terrorist-related transactions, and determine if any of their customers are “politically exposed persons.”

The law applies to non-Canadian virtual forex exchanges if they have Canadian customers. Banks might also not open or maintain accounts or have a correspondent banking relationship with corporations dealing in virtual currencies if that corporation is not registered with Fintrac.

Dealers in digital currency are regulated as money offerings businesses.

The Authorite des Marches Financiers, the regulator in the province of Quebec, has declared that some bitcoin related business fashions including exchanges and ATMs are regulated under its current MSB Act.

As of April 2018, the Bank of Montreal (BMO) announced that it would ban its credit and debit card clients from participating in cryptocurrency purchases with their cards. This is following every other banking ban in Canada from Toronto Dominion (TD.)