What is a crypto exchange?

What kinds might you meet?

Centralised exchange

An operator provides an account for exchanging assets. In a custodial account, it holds the keys and you rely on it for access.

Broker app

You deal with a provider through an app. Check whether the provider holds the keys and whether you can withdraw the actual asset.

Decentralised exchange (DEX)

You use blockchain software to exchange assets. Check what you are approving and who controls the keys. The label “decentralised” does not remove software risks.

Peer-to-peer

You arrange a trade with another person. A platform may help organise it. Check who holds the assets at each step and how disputes are handled.

Does an account mean you hold the coins?

A login gives you access to an account. It does not necessarily give you control of the spending keys. If a service holds the keys, it may restrict withdrawals or stop operating.

Ask what happens to your assets if that service fails. An app showing a balance is not the same as controlling the keys yourself.

What should you check before signing up?

• Registration: check the official regulator where you live. Match the legal business name, not just the app name.
• Control: who holds the keys, and can you move the asset out?
• Costs: read the fees and the spread, the gap between buying and selling quotes.
• Withdrawals: check limits, delays and withdrawal fees.
• Failure: find the terms explaining what happens if the platform cannot operate.

Where can you check in Canada?

Start with the official FINTRAC money services business registry. Also check with your provincial or territorial securities regulator. The Canadian Securities Administrators' regulator directory can help you find it.

A FINTRAC registry entry is not an endorsement or a guarantee that a platform is safe. It does not replace checking the securities rules that apply where you live. Read the current official information before relying on a platform's claims.