As of March 2021, in a public notice by the CSA and IIROC (Canadian Investment Regulatory Organization), Canada has asserted its position in regulating cryptocurrency activity. The government sector ensures that all cryptocurrency exchanges and companies comply with the regulations.
Every entrepreneur must register a company with the Financial Transaction Analysis Center of Canada (FinTRAC). The securities legislation must also apply to cryptocurrency transactions.
The use of virtual currency is not prohibited in Canada, but it is not considered legal tender. Transactions with cryptocurrency are allowed, but it is not possible to pay for state fees, taxes, and charges. The IRS has defined cryptocurrency as a commodity, which acts as a barter transaction in exchange for other goods.
AML/CFT Act (PCMLTFA Act).
Virtual work companies qualify as Money Service Businesses (MSBs). The Act also applies to exchanges operating outside the country and providing services to individuals and entities in the country.
The Securities Act.
In August 2017, the Canadian Securities Administrators (CSA) passed the CSA Staff Notice 46-307 Cryptocurrency Offerings Act, which regulates the licensing of virtual currency exchanges and transactions.
Bank of Canada's Blockchain Project.
Regulates international payments that use DLT technology.
If you want to open a cryptocurrency business in Canada, an MSB license is required for legal activities.
Companies with this type of license can perform the following financial transactions:
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