Currency Exchange in Canada

In Canada, the regulation of crypto-currency activities of the state occurs only when the necessity of combating the legalization of income obtained by criminal means. In 2016, the Bank of Canada reported on the work of the digital version of the canadian dollar based on the Blockchain technology.

Canada is the second largest in the world after USA by number of installed bitcoin ATMs. With the aim of better understanding of Blockchain technology the state is developing a digital version of the canadian dollar based on it. Regulators continue to monitor the development of digital currencies and distributed technologies, carrying out regulation of cryptocurrency activities only when necessary.

In this work the cryptocurrency exchanges have been resolved in 2014 when the Governor General of Canada approved the draft law according to which such exchanges are subject to registration with the Canadian centre for analysis of financial operations and reporting (Financial Transactions and Reports Analysis Centre of Canada, hereinafter "FINTRAC") and must comply with legislation in the sphere of combating legalization (laundering) of incomes. Without proper registration exchange can't open a Bank account. The rest of the activities of companies is not regulated.

Payments for goods or services using digital money is taxed as a barter transaction. In addition, when selling cryptocurrencies subject to income tax (Income Tax), profit tax (Corporation Income Tax) or the tax on capital gains (Capital Gains Tax).

Cryptocurrency, received in the result of mining, which was carried out for commercial purposes, subject to income tax (Income Tax). The definition of the commercial component is carried out in each case separately. Subject to tax and received in bitcoin wages of the employee.

Legal regulirovanie cryptocurrency in Canada

  • Banks can't open accounts with cryptocurrency exchanges, non-FINTRAC.
  • this bill extends both the companies incorporated in Canada and companies that provide related services in Canada, but is registered in another jurisdiction.
  • Payment for goods or services using crypto-currencies taxed as a barter transaction. In the case of the sale of the digital currency subject to income tax (Income Tax), profit tax (Corporation Income Tax) or the tax on capital gains (Capital Gains Tax)
  • Cryptocurrency, received in the result of mining, which was carried out for commercial purposes, subject to income tax (Income Tax). The definition of the commercial component is carried out in each case separately. Subject to tax and received in the cryptocurrency employee wages
In Canada, the regulation of crypto-currency activities of the state occurs only when the necessity of combating the legalization of income obtained by criminal means. In 2016, the Bank of Canada reported on the work of the digital version of the canadian dollar based on the Blockchain technology.