Is Bitcoin Legal In Canada?
You are starting to hear about digital currency more and more these days and Canadians want to know if it’s legal to buy Bitcoin in Canada.
The answer is YES.
It is legal to buy and sell cryptocurrencies in Canada. Not just Bitcoin but all cryptocurrency such as Litecoin, Ethereum, Dogecoin, Dash which are referred to as altcoins.
Although Canada recognizes digital currency for buying and selling wherever it’s accepted, it is not considered legal tender in Canada. Meaning, you are not able to use it to pay your taxes (yet)
Richmond Hill and Innisfill Ontario Recently announced that they will be accepting Bitcoin for tax payments. At this moment they have not actually accepted Bitcoin but published a statement. As we see cryptcurrency being accepted in local stores and super markets we can only speculate it will eventually be accepted worldwide.
As for now, we are treating it as an asset that is determined by supply and demand. The government will need to implement some sort of regulation if and when cryptocurrency is accepted. The economic factors that cause Bitcoin to fluctuate so much will need to be taken in consideration. I wouldn’t be happy paying my taxes in Bitcoin on Monday and by Friday its up a few thousands because the demand suddenly increased. This scenario can also work the other way with the demand of Bitcoin dropping and instead of being upset on Friday, I would be ecstatic.
What are two things that are certain for everyone….yes, death and taxes. The Canadian Revenue Agency expects you to report your gains or loses on your yearly tax returns, like any investment, it also applies to cyrptocurrency.
The Canadian government has a whole page on their website dedicated to cryptocurrency.
Have a look…