Part 5 of the “Smartblock Law Guide to Cryptocurrency Contracts, Litigation, Monetary Instruments, and Financial Institution Regulations in Canada” Read More: https://www.smartblocklaw.com/blog/sbl-guide-part-5
Part 3 of the “Smartblock Law Guide to Cryptocurrency Contracts, Litigation, Monetary Instruments, and Financial Institution Regulations in Canada” For more information visit https://www.smartblocklaw.com/blog/sbl-guide-part-3
Trades on or through Canadian cryptocurrency exchanges or wallets can engage rules for both income tax and GST-HST, respectively pursuant to the Income Tax Act and the Excise Tax Act.
There is no directly binding authority, in the form of legislation or an advance tax ruling, regarding Canadian cryptocurrency taxation. Read more: https://www.smartblocklaw.com/blog/crypto-tax-primer-part-1
One of the key features of the “be your own bank” movement is the anonymity with which crypto-funds can be transferred. There are merited concerns that this aspect of cryptocurrency enables money laundering and terrorist financing. Read more: https://www.smartblocklaw.com/blog/crypto-kyc-in-canada
The CRA has deferred to other government departments to determine when, or how, the consideration of cryptocurrency should change from a commodity to a currency (see June 5, 2014 Proceedings of the Standing Senate Committee on Banking, Trade and Commerce).
The CRA has stated that Bitcoin can be “specified foreign property”, whether held personally or by a partnership, when “it is situated, deposited or held outside of Canada and not used or held exclusively in the course of carrying on an active business”.