With the explosion of the digital assets industry and an exponential increase in using and investing in cryptocurrencies, having a clear understanding of the current and evolving cryptocurrency regulations in Canada is paramount to ensuring safe transactions.
A cryptocurrency is a digital or virtual currency that is decentralized and is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. While most people are familiar with Bitcoin and Ethereum, there are more than 5,000 different cryptocurrencies in circulation.
Some of the most well-known cryptocurrency exchanges in Canada are Coinbase, Netcoins, Newton, Coinberry and Binance Canada.
Main regulatory facts everyone involved in cryptocurrency trading in Canada should know:
Starting February 2020, the Virtual Currency Travel Rule requires all financial institutions and money services businesses (MSB) to keep a record of all cross-border cryptocurrency transactions and EFTs.
In February 2022 a private member’s bill on cryptocurrencies was introduced to the House of Commons, Bill C-249 aimed at encouraging growth of the crypto-asset sector. The bill is in its Second reading (House) as of April 5, 2022.