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The ILLEGAL IN CANADA meme originated 2005-10 on 4chan/b/, when a Canadian sex-offender was convicted of owning Lolikon hentai and was hit with child pornography related charges.

Traditionally, there had been a barrier between drawn media depicting children and real photographic or video child pornography. Virtual images were not considered child pornography and thus not illegal material. ILLEGAL IN CANADA became a catch-phrase to describe loli art, poking fun at the Canadian ruling which many legal experts described as an extreme case with extenuating circumstances.

The ILLEGAL IN CANADA meme was seen as BANNED IN CANADA or B& IN CANADA early in its life, especially if someone posted real CP or a lolikon picture that was graphic enough to look traced.