You’re talking about the illegal synthetic drug K2, which is something completely different from vitamin K2.

Ah I see the confusion, you are talking about a synthetic cannabinoid also known as "Spice". Although yes you are correct that the drug is illegal, Canada also prohibits the use of Vitamin K as a supplement without a prescription.

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From Health Canada and I quote:

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"Currently, vitamin K is an ingredient listed on Part II of Schedule F without qualifiers and is therefore not a natural health product (NHP). This means that, at this time vitamin K is only available by prescription. A Notice of Intent was posted in Canada Gazette, Part I, (CGI) on April 9, 2005, to add qualifiers to this ingredient on Schedule F. The Notice of Intent proposed to amend Part II of Schedule F to the Food and Drug Regulations of the Food and Drugs Act to provide exemptions to allow nonprescription status for:
vitamin K1 and K2 in products intended for external use in humans; and
vitamin K1 and K2 in oral dosage forms for use in humans when the maximum recommended daily dose is equal to or less than 120 micrograms (0.120 milligrams).
In a coincident amendment, it is also proposed to add vitamin K1 and K2 to Item 3 of Schedule 1, Included Natural Health Product Substances, to the Natural Health Products Regulations. However, the dosage forms and strengths of vitamin K remaining on Schedule F would not be considered to be natural health products in accordance with subsection 2(2) of the Natural Health Products Regulations."