Is Newton Safe? Security, Regulation, and Custody Explained (2026)
Is Newton crypto safe? We break down Newton's regulatory status, custody partners, security measures, and what protections you actually have as a Canadian investor.
Yes, Newton is one of the safest crypto exchanges available to Canadians. It’s registered with FINTRAC and the Ontario Securities Commission (OSC), uses Coinbase Custody for cold storage, has never been hacked since launching in 2018, and keeps 80% of customer crypto offline.12
That said, crypto investments aren’t protected by CDIC or CIPF like bank deposits or stocks. This guide explains exactly what protections you have and what risks remain.
Why Canadians are cautious: The 2019 QuadrigaCX collapse, where $215 million in customer funds were lost after the founder’s death, traumatized Canadian crypto investors. Since then, the OSC has required exchanges to register and prove they have proper custody, insurance, and financial controls. Newton went through this full approval process.
What regulations does Newton follow?
Newton is registered with multiple Canadian financial regulators, making it one of the most compliant crypto exchanges in the country.13
| Regulatory Body | Status | What It Means |
|---|---|---|
| FINTRAC | Registered MSB | Anti-money laundering compliance |
| Ontario Securities Commission (OSC) | Restricted Dealer | Securities law compliance |
| Canadian Securities Administrators (CSA) | Approved | Can operate in all provinces |
| Autorité des marchés financiers (AMF) | Compliant | Quebec operations approved |
| PIPEDA | Compliant | Privacy law compliance |
Newton went through a rigorous approval process with the OSC that included reviews of their financial controls, compliance processes, security systems, working capital, insurance, and custody arrangements.2
What “Restricted Dealer” means: This isn’t a limitation - it’s a regulatory category. Newton had to meet strict requirements around custody, capital reserves, and investor protection to earn this registration. Many offshore exchanges (Binance, KuCoin, OKX) couldn’t meet these standards and left Canada or were banned.
Note: Newton’s CEO is Dustin Walper - the company doesn’t hide behind anonymity. Knowing who runs the exchange adds accountability that many crypto platforms lack.
How does Newton protect your crypto?
Newton uses an 80/20 cold storage model: 80% of customer crypto is held offline with Coinbase Custody, 20% is in hot wallets secured by Fireblocks.24
| Security Feature | Details |
|---|---|
| Cold storage | 80% of assets offline with Coinbase Custody |
| Hot wallets | 20% secured by Fireblocks |
| Asset segregation | Customer assets held separate from company assets |
| No re-hypothecation | Newton cannot lend or pledge your crypto |
| Insurance | Custodied assets insured against hacks/theft |
| Backups | Daily off-site backups on Canadian servers |
Coinbase Custody is an institutional-grade custodian used by major companies and funds. It uses offline cold storage, multi-signature security, and physical security measures at geographically distributed locations.
Fireblocks secures the hot wallets (the crypto that needs to be available for withdrawals). It uses multi-party computation (MPC) technology that eliminates single points of failure.
What security measures protect your account?
Newton requires two-factor authentication (2FA) and implements multiple layers of account protection.5
| Account Security | Details |
|---|---|
| 2FA required | SMS verification for withdrawals |
| KYC verification | Identity verification required for all users |
| SSL encryption | All data encrypted in transit |
| Withdrawal verification | Email confirmation for crypto withdrawals |
| Internal audits | Regular security audits and penetration testing |
Room for improvement: Newton currently uses SMS-based 2FA rather than authenticator apps (like Google Authenticator or Authy). Authenticator apps are generally considered more secure because they’re not vulnerable to SIM-swap attacks. Many users would prefer this option.
Has Newton ever been hacked?
No. Newton has not been hacked since launching in 2018.5
This is a strong track record, especially compared to the crypto industry overall where exchange hacks have been common. Newton’s regulatory compliance and custody partnerships likely contribute to this security record.
That said, past performance doesn’t guarantee future security. The crypto industry remains a target for sophisticated attacks.
What protections do you NOT have?
Your crypto on Newton is NOT protected by CDIC (Canada Deposit Insurance Corporation) or CIPF (Canadian Investor Protection Fund).6
| Protection | Covers | Newton Status |
|---|---|---|
| CDIC | Bank deposits up to $100K | Not covered |
| CIPF | Securities up to $1M | Not covered |
| Custodian insurance | Hacks/theft of custodied assets | Covered |
This isn’t unique to Newton - no crypto exchange in Canada offers CDIC or CIPF protection. Cryptocurrency is classified differently than bank deposits or traditional securities.
What this means practically:
- If Newton goes bankrupt, your crypto could be at risk
- If there’s a hack that exceeds insurance coverage, you could lose funds
- You’re relying on Newton’s security and custody partners, not government guarantees
Warning: For long-term holdings, consider withdrawing crypto to your own hardware wallet (Ledger, Trezor). “Not your keys, not your coins” remains good advice even with regulated exchanges.
How does Newton compare to other Canadian exchanges?
Newton’s security is on par with or better than other major Canadian exchanges.
| Exchange | FINTRAC | OSC/CSA | Custody Partner | Hacked? |
|---|---|---|---|---|
| Newton | Yes | Yes | Coinbase Custody | No |
| Shakepay | Yes | Yes | BitGo | No |
| Wealthsimple | Yes | CIRO | Institutional | No |
| NDAX | Yes | Yes | Ledger Vault | No |
| Bitbuy | Yes | Yes | Coinbase Custody | No |
All major Canadian exchanges have similar regulatory status and security practices. The main differentiators are fees, features, and coin selection - not safety.
Should you trust Newton with your crypto?
Newton is as safe as any Canadian crypto exchange. They have:
- Multiple regulatory registrations (FINTRAC, OSC, CSA)
- Institutional-grade custody (Coinbase Custody)
- 80% cold storage policy
- Insurance on custodied assets
- Clean security track record since 2018
- Transparent leadership
Reasonable precautions:
- Enable 2FA on your account
- Use a strong, unique password
- Consider withdrawing large holdings to a hardware wallet
- Don’t keep more on the exchange than you need for trading
How I Use Newton
I treat Newton as a bridge, not a vault. While I trust their Coinbase Custody partition (80% cold storage), I personally move any amount over $5,000 to my Ledger Nano X immediately. Newton’s free withdrawals make this easy—there’s no reason to leave large holdings on any exchange.
Related Pages
- Newton vs Shakepay: Fee Comparison
- Newton vs Wealthsimple: Fee Comparison
- Forgot Your Newton Referral Code?
- Newton Referral Code 2026
Footnotes
Newton regulatory registrations and compliance: https://www.newton.co/security ↩ ↩2
OSC registration decision detailing custody and compliance requirements: https://www.osc.ca/en/securities-law/orders-rulings-decisions/newton-crypto-ltd-0 ↩ ↩2 ↩3
Newton is registered with FINTRAC, OSC, CSA, and AMF: https://www.newton.co/get-started ↩
Newton uses Coinbase Custody for cold storage and Fireblocks for hot wallets: https://www.osc.ca/en/securities-law/orders-rulings-decisions/newton-crypto-ltd-0 ↩
Newton security practices including 2FA, penetration testing, and clean hack record: https://www.newton.co/security ↩ ↩2
Crypto assets are not covered by CDIC or CIPF (disclosed in Newton’s risk statement). ↩
Frequently Asked Questions
Is Newton a legitimate company?
Yes. Newton is a registered Canadian company based in Toronto, founded in 2018. It's registered with FINTRAC as a Money Services Business and with the OSC as a Restricted Dealer. The CEO is Dustin Walper.
Is Newton insured?
Partially. Assets held with Coinbase Custody are insured against hacks and theft. However, Newton is NOT covered by CDIC or CIPF, so there's no government-backed protection like you'd have with a bank account.
Can Newton steal my crypto?
Newton is legally prohibited from using customer assets. Under their regulatory requirements, customer assets must be held separately from company assets, and Newton cannot pledge, lend, or re-hypothecate your crypto.
Is Newton safer than Shakepay?
They're comparable. Both are registered with Canadian regulators, use institutional custody (Newton uses Coinbase Custody, Shakepay uses BitGo), and neither has been hacked. Choose based on fees and features, not safety.
Should I withdraw my crypto to a hardware wallet?
For long-term holdings, yes. Keeping crypto on any exchange - even a regulated one - carries counterparty risk. If you're holding significant amounts for the long term, a hardware wallet (Ledger, Trezor) gives you full control of your private keys.
What happens if Newton goes bankrupt?
Your crypto should be segregated from company assets, meaning it wouldn't be available to creditors in bankruptcy. However, the process of recovering assets could be slow and complicated. This is why many investors prefer self-custody for large holdings.
About the Author
Alex Vance — Crypto Contributor
Alex helps Canadians discover the benefits of trading cryptocurrency with Newton. With a focus on accurate, up-to-date information about referral bonuses and crypto tips, Alex is committed to helping readers make informed decisions on their crypto journey.
