Ayorinde Ayodeji
Is bitcoin legal in Canada?
Well, we are going to find out the real truth behind bitcoin in Canada.
Since cryptocurrency was first introduced the world has advanced and leveraged on cryptocurrency, every country has it’s own approach towards crypto and adopting it as a means of investment.
With numerous groups and events devoted to promoting the usage and adoption of cryptocurrencies, Canada has a relatively active and expanding crypto ecosystem.
The Bank of Canada has been looking into the potential of introducing its own digital currency, known as the “digital loonie,” though.
The bank is actively looking into and considering this, even though there isn’t a firm plan in place just yet.
Let’s get to the real deal.
Is Bitcoin Legal in Canada?
In short answer “Yes”.
Trading Cryptocurrency is legal in Canada according to the Canadian government. Buying and selling bitcoin is legal in every Canadian province.
The Canadian government stated on it’s official homepage that investing in digital currencies such as bitcoin, is perfectly legal but all though the capital gains will be taxed just like every other investment assets.
There is not limit to as what crypto assets you can buy, sell and trade.
It’s also important to note that the Canadian government has put up a regulator to help protect consumer and reduce money laundering. As a company it’s also important to register with Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
According to a 2014 statement by the Canada Revenue Agency (CRA), cryptocurrencies should be treated similarly to conventional commodities for taxation.
As a result, any gains derived from the purchase and sale of cryptocurrencies are taxable and must be disclosed on your tax return.
Generally, Canada has adopted a reasonably permissive stance toward cryptocurrencies, and the nation is home to a number of cryptocurrency exchanges and businesses. Yet, it’s crucial to keep up with any changes in the legal environment as legislation may differ by province or territory.
Bitcoin market is volatile and if you can’t handle volatility then don’t invest in crypto.
Bitcoin are not accepted as legal tender in Canada like El Salvador and so either the Bank of Canada or the Royal Canadian Mint do not accept it.
Here is a list of some popular cryptocurrency exchange platforms in Canada:
In conclusion, It’s also crucial to conduct your own research and keep up with any new changes or legislation that could have an influence on cryptocurrency trading in Canada because the regulatory landscape in that country is prone to change.
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