Bitcoin is Legal to buy and transact in Canada and is regulated by anti-money laundering legislation and counter-terrorist financing legislation.
Given its popularity, it’s not surprising that Bitcoin got under Canada Revenue Agency’s radars. If you buy, hold and sell virtual currency, and make a profit in the process, you must claim that profit as capital gains.
Not reporting capital gain income is considered illegal. Interestingly, if you use Bitcoin as part of your personal business expenses, your deduction for the expense would be the Canadian Dollar equivalent amount, based on the exchange rate at the time.
See the link below for additional information from CRA website:
Not only is Bitcoin legal to own and trade in Canada, the Canadian government and central bank are making significant steps to understand the merits of the blockchain, the technology powering Bitcoin and 800+ other digital currencies. As recent as in February, it was reported that Ottawa was exploring the feasibility of Canada becoming a global hub for the blockchain “revolution”. Senior government officials discussed the opportunity in a meeting with bankers, corporate executives, regulators, and experts in the Tech industry. The premise is to position Canada at the forefront of blockchain innovation and create a foundation for the Canadian economy to grow as industries undergo structural shifts.
Disclaimer: CryptoCanucks.com is not intended to provide tax, legal or investment advice, and nothing on CryptoCanucks.com should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any asset by CryptoCanucks.com or any third party. You alone are solely responsible for determining whether any investment, asset or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation.