The Canadian cryptocurrency landscape at this point is nothing to smirk at as the country is able to host one of the densest cases of Bitcoin ATMs. In fact, Canada was the first country to introduce a Bitcoin ATM to the crypto industry, which then spread to countries such as the United States and the United Kingdom.
However, the Canadian government hasn’t really touched upon the perception of cryptocurrencies as securities and investment assets, rather looking at them as hobbyist commodities or simple electronic money.
The Canadian Securities Administrators have now come out with a Business plan targeting the next three years. The plan included concerns about the emerging technologies of the financial markets, especially the ones allowing mass spreading of information previously available only to industry insiders.
According to the CSA, this information could prove to be detrimental to the security of investors’ financial assets. The primary target of the concerns were Social Media channels such as Facebook and Twitter, where many market insiders go to in order to spread information.
Another topic was concerning the blockchain technology which touched upon the Distributed Ledger Technology.
What is the CSA targeting
The Canadian Securities Administration is full of market experts of various assets such as Forex and stocks. It is now currently staffing its office with experts in the blockchain industry to determine the ramifications of implementing the new asset into their current economy.
It is a very smart thing to consider as cryptos have the tendency to disrupt various operations the county may have been in the middle of. In fact, one of the most popular industries being disrupted by nationally accepted cryptos is the gaming industry.
The reason behind this industry always being the victim is due to the very strict regulations that come alongside it in nearly every country. For example, the betting and specific gambling sectors like online roulette in Canada are currently in danger of being un-maintainable by the government due to the interference of cryptos in the regulation.
The government relies on efficient tracking of payments in order to prevent outside companies offering services to their population without applying for a proper license. With cryptocurrencies, players making deposits on such platforms will manage to avoid the spying eyes of the government, ultimately exposing themselves to fraudulent companies and unfair KYC/AML implementations.
Potential for crypto taxation?
In order to bring cryptocurrencies within the regulatory fold of Canada, the government will have to tailor a specific regulation which will classify cryptos as securities and derivatives.
Should this happen, the assets will be exposed to even more taxation in terms of offering their sale and promotion to the Canadian public.
The CSA could experience some pushback from the industry about this case, as most market experts are campaigning against crypto taxes. Furthermore, Canadian crypto enthusiasts have a very strong argument against the taxation of cryptocurrencies.
If something as dangerous as wagering is not taxed, then why should an even less dangerous activity like crypto investing suffer from capital gain tax?
Should this question arise, the government will have to make even more amendments, ultimately driving the market to a grey area-like state.