Menu
header photo

The Journaling of Lane 778

jokepump40's blog

Canada Crypto Exchange

Bitbuy is Canada's leading cryptocurrency trading platform and only supports four digital (crypto) currencies namely Bitcoin, Bitcoin Cash, Litecoin and Ethereum. If the cryptocurrency has a value at the time of its disposition buy sell bitcoin in excess of its tax cost, it will be critical to determine whether the holder should report such excess as being on capital account (i.e., a capital gain) or whether the proceeds should be reported as business income.
Should resulting Canadian regulation be conducive to health of the sector in Canada it will likely be welcomed by other cryptocurrency exchanges as investors balk at the near billion dollars in cryptocurrency lost in 2018 due to hacks, breaches, heists and other scandals.

Issuers of a cryptocurrency that is found to be a security will also need to ensure that they comply with any applicable registration requirements, including dealer registration, or that the conditions for an exemption from registration are fully satisfied.
The largest European crypto trading platform Bitstamp was also the first to become a registered financial institution in the EU. Bitstamp is also part of the basket of exchanges the Chicago Mercantile Exchange's parent company uses to price bitcoin futures.
For the past weeks, we have worked extensively to address our liquidity issues, which include locating our very significant cryptocurrency reserves held in cold wallets required to satisfy customer cryptocurrency balances on deposit and sourcing a financial institution to accept the bank drafts being transferred to us. Unfortunately, these efforts have not been successful.

If the cryptocurrency is acquired through mining” activities of a commercial nature (i.e., mining carried out generally for business purposes or in connection with a business), the current published administrative position of the CRA is that the acquirer will be required to report business income for the year determined with reference to the value of the mined cryptocurrency.
Powered by AlphaPoint's exchange software , Bitvo provides its customers with the convenience of instant account registration, same day processing of deposits and withdrawals and live customer support 24 hours a day, seven days a week, guaranteeing to refund customers' fees if they are unable to honor.

UPDATE (June 4, 2014): On May 8, 2014, the Bank of the Netherlands issued a statement on virtual currencies, pointing out the unlikelihood of Bitcoin replacing the current financial and monetary system; the inability of virtual currencies fully assume all the functions of money; the weak security guarantees provided by the virtual currency market players; and the considerable risks” posed by buying, spending, or receiving such currencies.
Earlier this year, a report by auditor Ernst & Young found significant problems in how the exchange was managed, including finding that Cotten created certain accounts on the Quadriga platform under aliases that may have been used to trade on the exchange.
According to the notice, members are required to market and margin crypto futures contracts daily at the greatest of: (a) 50% of market value of the contracts; (b) the margin required by the futures exchange on which the contracts are entered into; (c) the margin required by the futures exchange's clearing corporation; and (d) the margin required by the Dealer Member's clearing broker.

This article provides a primer on the Canada Revenue Agency ("CRA") preliminary guidance to date regarding the characterization and tax treatment of cryptocurrency, both under the Income Tax Act (Canada) ("ITA") and the Excise Tax Act (Canada) ("ETA").

Go Back

Comment

Blog Search

Comments

There are currently no blog comments.