The cryptosphere was once considered a completely free market, but recently governments around the world started to think about regulating it.
The legal status of cryptocurrencies varies greatly from one jurisdiction to another. While some states tighten legislation, others support the development of blockchain projects. In some countries, cryptocurrencies already have the status of an exchange commodity or investment asset and are subject to taxation.
Canada has fully legalized the cryptocurrency business. Crypto money is regulated by anti-money laundering and anti-terrorist financing laws. Bitcoin is equated with commodities or “non-physical” property. The government also provides full information about all possible risks of working with digital assets.
Legal and Regulatory Framework
Canada has a pretty clear regulatory framework and laws for cryptocurrency owners and traders. Canadian citizens can easily report their cryptocurrency income and pay taxes.
New legislation in Canada, which came into effect in June 2020, allows for the exchange of cryptocurrency and payment operators that deal with cryptocurrencies. They are now officially classified as money services organizations. This means that all cryptocurrency exchanges must now be registered with the Financial Transactions and Reports Analysis Center of Canada (FINTRAC).
When setting up a company in Canada, registration with FINTRAC is mandatory for the following occupations:
● mining, obtaining, and selling mainstream digital coins;
● trading (according to Canadian laws, cryptocurrencies can be traded in the
same way as exchange-traded commodities);
● payment services;
● cryptocurrency payment kiosks (Canada allows ATMs for virtual coins);
● crypto exchanges.
A FINTRAC license is also required for anyone whose activities are related to financial services, including those provided to Canadian residents from abroad, regardless of province.
The emergence of regulation also means certain requirements for cryptocurrency organizations. Such companies will be required to send information to the Canadian authorities about their clients’ transactions with virtual capital.
Canadian native cryptocurrency
Moreover, the Bank of Canada wants to develop its own digital currency called CADcoin. If the value of alternatives grows, the government intends to use CADcoin to maintain its monopoly on digital money. Canada ranks second in the world after the U.S. in the number of Bitcoin ATMs installed. The country is also actively supporting and exploring blockchain technology.
One of the most popular ways to buy digital money in Canada is through a cryptocurrency exchange. Most cryptocurrency exchanges accept different payment methods. So, you can buy coins using bank transfers, debit or credit cards, PayPal, etc.
By obtaining a license and working in a legal field, crypto exchanges and other service providers can gain the trust of users.
Why is it worth to exchange cryptocurrencies on Godex?
If you need to convert cryptocurrencies in Canada you need to choose an authoritative platform. Pay attention to the Godex exchange service. This is your reliable partner when you need to exchange cryptocurrency online. On top of the main players in the crypto field such as Bitcoin, Ethereum, here you can easily buy or sell AVAX or LINK, swap NEXO to XMR, and interchange many other crypto pairs. A large selection of crypto pairs for exchange, low commissions, fixed rates
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