Legalities or Legal Restrictions
• Legalities: Canada's government allows its citizens to use digital currencies to transact on all stores that accept them. It is also legal to trade them in exchanges. However, it does not consider cryptos as legal tenders. The only legal currency is the Canadian dollar.
• Taxation: The government of Canada classifies cryptos as commodities rather than legal; tender. Thus, trading using crypto is a batter transaction, and tax laws apply. Sellers' income from cryptos is considered when filing taxes, and individuals must report losses or gains from digital currency exchange.
• Anti-money laundering: These rules apply to companies that deal with digital currency exchange in Canada and those outside but have direct services with parties in Canada. They must register their transactions, keep the records, and report suspicious money laundering activities to comply with the laws.
