Crypto Trading in Canada
This guide aims to provide the latest information regarding crypto trading in Canada. We touch upon regulations, platforms, and future prospects of the crypto trading industry within Canadian borders. Armed with knowledge from this article, you will be able to identify needed trends while trading in Canada.
We also provide historical development of the market, identifying important milestones that have shaped the industry. Lastly, we conclude on general situation and what to expect in the near future based on results.
Is Crypto Trading Legal in Canada?
Despite the latest talks amongst officials and business owners, there is no clear policy dedicated
Looking at the report made by
Differences in Fiat and Crypto Regulation Treatment
As mentioned before, cryptocurrencies like bitcoin are not legal tender in Canada, as an only CAD and other fiats are. Thus, their regulations and treatment in terms of taxes and reports are different. Cryptos need to be part of the asset reports when filling out your tax papers. Thus, the government sees coins more like commodities and online assets rather than as a currency.
You do have an option to purchase products and services using your crypto wallet and you also have BTM machines. Fiats are part of the Federal Bank’s control while cryptocurrencies depend only on market trends and are thus a lot less stable in value.
When it comes to regulative bodies and organizational structure that controls the crypto market, Canada is very similar to the US. You have Federal Bank as a head that creates general recommendations for the industry and its pathway. Next in line of command is the Canada Revenue Agency (CRA), which oversees implementation of accounting standards.
CRA would post policies on how cryptocurrencies should be treated and general accounting and tax policies. On the practical level, the Financial Transactions and ReportsAnalysis Centre of Canada (FINTRAC) act as a market overseer.
It is FINTRAC that would implement policies made by CRA and is the first line of contact where taxes are in question. The main regulation act that regulates digital coins is the federal Proceeds of Crime and Terrorist Financing Act (PCTFA).
If we wish to pinpoint important development of the crypto market in Canada, one needs to look into Ethereum. The next largest cryptocurrency in the world is a product made by a Canadian team and is growing stronger. Both Ethereum and regulation policies started out in 2015, though the latter did not make any new
More importantly, as of 2015 and onwards, many exchanges and several platforms were established within Canadian borders. Since that time, regulative bodies did not add any other policies or event sub-acts. Trading platforms, on the other hand, grew in numbers globally, many of which offer services in Canada as well.
Apart from globally-available players, tools and software are usually developed in the US or Europe. Canadian-based development is slow to take up the race against southern neighbors.
What the Future Holds
When it comes to regulations, the CRA has been mostly quiet these days. Apart from a
The status quo at this point might be interesting enough for new online trade centers to come forth. Canadian law signifies the importance of income taxes for profit made without a need for specially-purchased licenses. This gives Canada an advantage over the US, where documents such as BitLicense are necessary for companies to operate.
Thus, we believe that Canadian market is yet to bloom in 2018 and coming years as well. It all depends however on the stance the government might take in the future. There have been many new trading platforms based in Canada due to acceptance of cryptos.
According to the ICO Watchlist, Canada holds 1.96% of a total number. Although not at the top, itis near enough to expect a steady growth of crypto businesses. You can check out the map by the ICO Watchlist for the year 2017 when it comes to the share of ICOs.
There are several options if you happen to live in Canada and want to trade coins like bitcoin and Ethereum. Canadian-based businesses usually offer simple exchange services, while few orients towards a trade as well.
To know more, check out our review about
GDAX – Out of the international players, GDAXhas interesting enough premise for Canadian traders. The liquidity is quite high, backed by parent company, Coinbase. You also have the ability to deposit CAD and work with your own domestic currency. Verification is a must, while available cryptos for trade are BTC, BCH, ETH, and LTC. We made a guide about this trading platform, which is available on our website.
Kraken – The reason why this US-based trade broker is on the list lies in the fact that you can trade coins with CAD. Another important benefit is the possibility to trade without completing advanced tiers of verification (up to $2.000 USD). The platform provides good liquidity and has adequate coverage of different cryptocurrencies. To know more about this platform, read our guide where we analyzed thoroughly its functions, fees, and security tools.
In this review, we went over the current situation of crypto trading in Canada. Results suggest that there is still a lot of space for the industry to grow. Regulations are light when compared to the US, which can allow new businesses to enter the market. There is a very limited number of trade centers that are Canadian-based but most of the international players’services are available.
If you liked this article, you should check out our numerous guides regarding individual trading platforms. We have the