Is Bitbuy Actually Regulated in Canada? Here's What Changed the Game

When most Canadians trade crypto through domestic brokers, they don’t realize their orders are getting middleman’d—routed to unregulated third-party platforms that slap on spreads before executing trades elsewhere. It’s a hidden cost nobody talks about.

But Bitbuy just flipped the script. The Toronto-based platform became Canada’s first and only crypto trading platform regulated as a marketplace (not just a restricted dealer), which means something fundamentally different happens with your trades.

The Marketplace Advantage: More Than Just Compliance

Here’s the key distinction: On Bitbuy’s regulated marketplace, your buy and sell orders actually match against other live orders from real users—no intermediary, no hidden spreads. Compare this to broker-dealer models where firms essentially act as counterparties and pocket the difference.

What does this mean for your wallet?

• True pricing: Transparent maker/taker fee structure, no hidden costs baked into the quoted price
• Better liquidity: Whether you’re moving small retail amounts or institutional capital, orders get matched properly
• Actual execution prices: You see exactly what price your trade executed at, not some massaged quote

Bitbuy CEO Michael Arbus emphasized this distinction: the platform is “the only registered platform in Canada today that matches client orders against true live orders,” which translates to lower transaction costs and better execution prices.

The Suitability Model: Unlimited Trading Where Others Cap You

Here’s where Bitbuy gets competitive advantage: Most regulated Canadian crypto platforms restrict users to $30,000 in annual trading on alternative coins. Bitbuy uses a suitability-based approach instead, meaning qualified users get unlimited access to all coins on the platform.

With major global exchanges pulling out of Canada, Bitbuy positioned itself as the destination for institutions, family offices, and high-net-worth individuals seeking unrestricted altcoin exposure in a regulated environment.

Security & Insurance: Assets Actually Protected

Safety concerns keep many Canadians on the sidelines. Bitbuy addressed this by increasing insurance coverage for assets held in both hot wallets and cold storage, giving users another layer of peace of mind beyond just regulatory compliance.

The platform also registered with FINTRAC as a Money Services Business in the Virtual Asset Service Provider category, adding another compliance checkpoint.

What’s Next for Bitbuy?

Founded in 2016, Bitbuy has grown to become one of Canada’s largest crypto platforms by trading volume, now operating with over 85 employees from downtown Toronto. The company isn’t stopping at marketplace status—upcoming initiatives include expanding coin offerings and attracting institutional liquidity to further deepen the order book.

The bottom line: Bitbuy’s regulated marketplace status isn’t just regulatory theater. It’s a structural difference that actually changes how trades execute and what Canadians pay for them.