Is trading Bitcoin legal in Canada?

While Bitcoin is not accepted as legal tender in Canada , there are no rules prohibiting the buying or selling of Bitcoin. Bitcoin and other cryptocurrencies are treated like any other security in Canada. Just like stocks and ETFs, the sector is quite regulated, so investors can rest assured that there are no legal troubles with owning bitcoin. Each crypto exchange platform is considered a Money Services Businesses (MSB) and is required to be registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and comply with their stringent rules in order to operate.

Are Bitcoin ATMs available in Canada?

Bitcoin ATMs are available in most major Canadian cities. In fact, the world’s first Bitcoin ATM was installed in a Vancouver, B.C. coffee shop in 2013. Nearly a decade later, there are an estimated 1921 machines currently in the country. There are two types of Bitcoin ATMs: unidirectional (only allows for the purchase of Bitcoins) or bidirectional (allows for both the buying and selling of Bitcoins). Using cash or card, users can go to ATMs and make transactions from cash into Bitcoin. Rather than being connected to a bank account like traditional ATMs, money is moved into and out of digital wallets or crypto exchanges using QR codes or other secure methods. While ATMs have the benefit of convenience, fees are usually quite high, averaging around 8.9% .

Can I buy Bitcoin through my bank in Canada?

There are currently no ways of purchasing Bitcoin or any other cryptocurrency through any of the traditional big six banks in Canada. While you can transfer money from your bank account into crypto exchange platforms to purchase Bitcoin, there is no way to directly purchase and hold Bitcoin within accounts at financial institutions.

Is Bitcoin taxable in Canada?

Yes. In Canada, Bitcoin is treated like a commodity for purposes of the Income Tax Act . That means that any money made from trading Bitcoin will be subject to capital gains tax. For this reason, it is important to keep track of transactions for end-of-year tax reporting purposes. There are several nuances, including whether the CRA views activities as personal or business.