Staking on Canadian crypto platforms: lock-ups, slashing, fees and what regulators require

Staking lets you earn rewards for helping secure a proof-of-stake blockchain. On a Canadian crypto platform, you don’t run any software yourself: the platform stakes on your behalf. Because that adds new risks, securities regulators set specific conditions for platforms that offer it.

This guide uses Newton’s March 2026 decision, published by the Ontario Securities Commission, to explain those conditions: what the platform must check, how your coins are held, the risks of lock-ups and slashing, and fees. For the basics, see what is crypto staking?

Which coins can be staked

Under its decision, Newton offers staking only for coins on proof-of-stake blockchains, unless the regulator consents otherwise. It currently lists Ethereum, Solana and Cardano, and may add others. Coinbase Canada’s 2026 decision likewise describes a platform where clients can stake crypto assets.

Before offering a coin for staking, Newton must review:

• the coin, its proof-of-stake network and its staking protocol;
• the risk of losing staked coins through software bugs or hacks;
• the validators it uses, including who runs them, their reputation, how much they stake themselves, their security, finances and track record, including downtime, “double signing” and past slashing penalties.

Newton doesn’t act as a validator itself without the consent of CIRO, Canada’s investment industry regulator. It works with its custodians and third-party validators.

Checks before you can stake

• Appropriateness. Newton must assess whether staking is appropriate for you before giving you access, and at least once every 12 months after that. If it decides staking isn’t appropriate, it won’t offer it to you.
• A risk statement. Before you stake for the first time, you get a plain-language statement covering the third parties involved, the validators, how custody differs for staked coins, the risks, lock-up periods, how rewards and fees are calculated, and how losses are shared.
• An acknowledgement every time. Immediately before each time you stake, you must acknowledge risks including possible lock-ups, the effect of volatility, that rewards aren’t guaranteed and past rewards don’t predict future ones, and that you could lose some or all of your staked coins if a validator misbehaves.
• Auto-staking. Newton can let you stake coins automatically when you buy them, but must show a prominent notice before each such purchase. You can switch it off at any time.

How your staked coins are held

Newton’s decision says:

• staked coins are held in trust for clients, with the custodian, in accounts separate from Newton’s own assets and from clients’ unstaked coins;
• the custodian keeps the private keys at all times. Custody isn’t handed to the validators;
• staking and unstaking are done on an omnibus basis: the platform adds up what all clients want to stake or unstake and adjusts the total.

Lock-ups and getting your coins back

Some networks impose lock-up periods, during which staked coins can’t be moved, and some have a warm-up period before rewards start. Under Newton’s decision:

• you don’t earn rewards during warm-up, or on coins you’ve unstaked that are still locked up;
• Newton may let you sell or withdraw before a lock-up ends, on a best-efforts basis, using its own inventory to provide the liquidity;
• where it doesn’t, you must wait until the lock-up expires.

Slashing: the risk of losing staked coins

Some networks punish validators that break the rules. Newton’s decision explains that if a validator is slashed or jailed, a percentage of the tokens staked with it, or of the rewards, can be permanently lost, and clients may stop earning rewards for a time.

Newton says it doesn’t guarantee against slashing. If it receives compensation from a validator or custodian, it passes it on to the clients affected. To limit the damage, it may spread staked coins across several validators, and it monitors them for downtime and penalties.

Rewards and fees

• Rewards are paid by the blockchain, usually per period, or epoch. Newton works out each client’s share and credits it to their account.
• On some networks, rewards are automatically restaked, so you must unstake them before selling or transferring them.
• Any reward rate shown is an estimate. Newton doesn’t offer a fixed, unconditional reward.
• Newton charges a fee as a percentage of your staking rewards, which it must clearly disclose.

The main risks at a glance

For CIPF, see Canadian crypto platforms joining CIRO.

Tax on staking rewards

The CRA says that rewards from staking on a centralised crypto-asset exchange will generally be considered income when they’re credited to your account on the platform. Selling the coins later is a separate disposition, which can give a capital gain or loss. See crypto staking taxes and crypto tax in Canada.