The increasing popularity of cryptocurrencies and other digital assets has brought upon many questions about this rising industry.
Some questions a person might have about cryptocurrencies are:
- What are the laws in Canada on digital assets?
- How do I protect myself and my crypto project?
- Do I need to issue a SAFT to investors?
- How do I form a legal relationship with my partners?
- How do I accept digital coins as payment on services or products?
Cryptocurrencies is not legal tender in Canada
The first thing one must understand is digital assets/cryptocurrencies is not considered legal money in Canada but rather a commodity. In saying that, you are still able to sell your digital coins on various platforms and turn it into legal tender and then transfer to your Canadian bank account. In Canada cryptocurrencies are regulated under the securities laws to protect the public. Speaking to a Lawyer on this subject who has a full understanding on digital assets can help you better understand.
Is Crypto Taxable in Canada?
The CRA considers cryptocurrency a digital asset although it is not recognized by the courts or government as legal tender such as Canadian or US dollars. Crypto is looked at as an investment and you are taxed on the profits.
When you dispose of any cryptocurrency and profit it then become taxable as per the laws in Canada.
Speaking to a lawyer that has experience and knowledge in this field is highly advised if you are looking to make gains in the world of crypto. An experienced crypto lawyer may be able to better guide you in making decisions about these types of investments.
Digital Assets and Blockchain Lawyer
Digital assets are changing the business landscape in Canada. Public and investor interests are also growing by the day in this sector as over the last decade there have been huge returns on many of these tokens such as Bitcoin and Ethereum. It is not advised to just jump into the waters in this new and unknown territory thinking you will see extraordinary gains overnight. Many individuals do lose a lot of money by doing this. Contacting a lawyer who has background experience with Digital Assets and Blockchain can prove to be an investment on its own. Legal advice will prove to be very helpful while navigating this space.
Any aspect of business should seek the advice of a corporate lawyer due to their knowledge in this field. A lawyer is there to protect, guide & advise you through your journey as an entrepreneur and will always look out for your best interests.
Jonathan Kleiman is one of the top-rated business lawyers in Toronto due to his knowledge in contracts and business dealings. Jonathan’s clients come from all walks of life, owning businesses that spread across the board in various industries. May you be a single business owner looking for incorporation or a partnership of two or more people looking to set-up a shareholder agreement within a corporation, Jonathan Kleiman is there to assist you fully.
If you are looking for a free no-obligation consultation for incorporation advice, call Jonathan Kleiman today.