Security Compliance
Since April 2025, VirgoCX operates as a non-custodial platform, meaning it never holds your crypto. The coins you buy are delivered to your own wallet, so there is no pool of customer funds on the exchange for hackers to steal. This replaces the old model, where assets were held in cold storage with third-party custody and covered by crime insurance. The new approach is actually closer to what we always recommend anyway: holding your own coins in your own Canadian crypto wallet. Fiat balances are held with Canadian banking partners.
Kraken keeps about 95% of user funds in cold storage, encrypts all account information, and physically secures its servers under constant surveillance. It has never been hacked since launching in 2013, one of the cleanest security records of any major exchange. Users can enable two-factor authentication, receive email notifications for every withdrawal, and benefit from account timeout protection. Kraken also publishes regular Proof of Reserves audits demonstrating customer funds are fully held.
Since April 2025, VirgoCX operates as a non-custodial platform, meaning it never holds your crypto. The coins you buy are delivered to your own wallet, so there is no pool of customer funds on the exchange for hackers to steal. This replaces the old model where assets were held in cold storage with third-party custody and covered by crime insurance. The new approach is actually closer to what we always recommend anyway: holding your own coins in your own Canadian crypto wallet. Fiat balances are held with Canadian banking partners.
Kraken keeps about 95% of user funds in cold storage, encrypts all account information, and physically secures its servers under constant surveillance. It has never been hacked since launching in 2013, one of the cleanest security records of any major exchange. Users can enable two-factor authentication, receive email notifications for every withdrawal, and benefit from account timeout protection. Kraken also publishes regular Proof of Reserves audits demonstrating customer funds are fully held. Note that Kraken's client assets are not covered by CIPF, which every user must acknowledge at sign-up.
VirgoCX takes a fundamentally different security approach: its non-custodial model means it never holds customer crypto, eliminating exchange-hack risk for coins entirely. Kraken keeps 95% of digital assets in cold storage, uses encryption for all account information, runs a bug bounty program, and publishes regular Proof of Reserves. Both platforms offer two-factor authentication. The approaches differ but both protect users effectively — VirgoCX by never holding assets, Kraken by securing them with institutional-grade infrastructure.
Regulatory Compliance
VirgoCX is registered with FINTRAC as a money services business (MSB M19955733) and appears on the Canadian Securities Administrators' list of crypto platforms authorized to do business with Canadians, so it is fully legal in Canada. It originally registered as a restricted securities dealer in 2022 but did not complete CIRO investment dealer registration, which is why it pivoted to the non-custodial model in April 2025.
Kraken is one of the most compliant exchanges available to Canadians. It completed the CSA's rigorous pre-registration undertaking process and obtained restricted dealer registration in April 2025, recognized nationally, while it works toward full investment dealer registration and CIRO membership. In the US, the SEC's lawsuit against Kraken was dismissed in early 2025, clearing its regulatory slate as the company prepares for a public listing. Canadians can use the platform with confidence, with one caveat: as a restricted dealer, its client assets aren't covered by CIPF insurance.
VirgoCX is registered with FINTRAC as a money services business (MSB M19955733) and appears on the Canadian Securities Administrators' list of crypto platforms authorized to do business with Canadians, so it is fully legal in Canada. It originally registered as a restricted securities dealer in 2022 but did not complete CIRO investment dealer registration, which is why it pivoted to the non-custodial model in April 2025.
Kraken is one of the most compliant exchanges available to Canadians. It completed the CSA's rigorous pre-registration undertaking process and obtained restricted dealer registration in April 2025, recognized nationally in every province and territory, while it works toward full investment dealer registration and CIRO membership. In the US, the SEC's lawsuit against Kraken was dismissed in early 2025, clearing its regulatory slate as the company prepares for a public listing. Canadians in every province can now use the platform with confidence — the old Ontario-only service restriction that existed before April 2025 no longer applies.
VirgoCX is fully compliant with Canadian laws, registered with FINTRAC and PIPEDA. Kraken is a registered restricted dealer in every Canadian province and territory, working toward full CIRO investment dealer registration.
Customer support
If you need help, you can contact VirgoCX's support team via email or live chat, and they offer multi-language support. Not many exchanges offer live chat.
Kraken offers 24/7 live chat and email support plus an extensive learning centre with helpful articles and guides. Support quality has historically been a sore point, with tickets sometimes taking a long time to resolve, though the live chat handles routine issues reasonably quickly.
VirgoCX offers support via email and live chat with multi-language support. Not many Canadian exchanges offer live chat at all, which is a genuine plus for newer users navigating the wallet setup process for the first time.
Kraken offers 24/7 live chat and email support plus an extensive learning centre with helpful articles and guides. Support quality has historically been a sore point, with tickets sometimes taking a long time to resolve, though the live chat handles routine issues reasonably quickly.
Both platforms offer live chat, which is rare in Canadian crypto. VirgoCX's multi-language support is a plus for non-English speakers. Kraken's 24/7 availability gives it a slight edge for traders active outside regular hours.
Conclusion
Both VirgoCX and Kraken are solid, fully legal options for Canadians, and the right choice depends on what you need.
VirgoCX suits Canadians who want access to over 90 cryptocurrencies with zero trading commissions on a locally focused platform. Its April 2025 non-custodial pivot means your crypto is never sitting on the exchange — it goes straight to your own wallet. The main adjustment is setting up your own wallet before you can trade, which adds one step for beginners, and spreads on altcoins are higher than some competitors. The live chat support and Quick Trade feature keep things accessible once you are set up.
Kraken is the stronger pick if you want pro-grade trading tools, a wider range of coins with CAD pairs, staking, and 24/7 live chat. Its restricted dealer registration across all Canadian provinces as of April 2025 makes it one of the most compliant global exchanges operating in Canada — and the old Ontario-only restriction that some readers may remember no longer applies. The main caveat is the absence of CIPF coverage on client assets, so long-term holders should withdraw to their own wallet regularly.
We recommend choosing VirgoCX for Canadians who want zero commissions and a non-custodial model, and Kraken for those who want more coins, staking and pro trading tools. By using our referral links, you support us in conducting comprehensive independent analyses of crypto trading options for Canadians.
If neither VirgoCX nor Kraken meets your requirements, explore our monthly-updated list of the best exchanges for Canadians for more options.
