Canadian Bitcoins ExchangeJust as one can purchase traditional commodities on a number of different exchanges in a number of different countries, and at times there may be price differences between these exchanges, so too, there are multiple Bitcoin exchanges, and there may be price differences between them. On December 11, 2017 the Investment Industry Regulatory Organization of Canada (IIROC”), the organisation that governs persons and companies registered under securities law, issued a notice to its members regarding margin requirements for cryptocurrency futures contracts that trade on commodity futures exchanges.
There are several other important features to consider, such as where an exchange is regulated and the payment methods accepted by canadian bitcoins review peer-to-peer trading sites, so check out our cryptocurrency exchange guide for more tips on how to choose the right platform.
Footnote #2 for the first sentence explains that when they use the term "Platform" it means: "Platforms may be "marketplaces" or dealers as defined in securities legislation." There's a bit of assuming the conclusion in this definition, but it certainly telegraphs what the CSA thinks, which is that companies that buy or sell cryptocurrency should be regulated securities market participants, or maybe even something more like a stock market (a "marketplace").
There was a 100% match between transaction data found in backend systems and amounts credited to user accounts accordingly relative to actual transaction amounts observed on the Bitcoin and Ethereum blockchains (for cryptocurrency transactions) and bank account records (for fiat transactions) in all transactions observed,” CipherBlade's report said.
At the same time as the CSA appears to be of the view that securities dealers are the right people to undertake these activities, securities dealers have actually steered clear of cryptocurrency and generally have little interest in this novel but still relatively small industry.
There was a 100% match between transaction data found in backend systems and amounts credited to user accounts accordingly relative to actual transaction amounts observed on the Bitcoin and Ethereum blockchains (for cryptocurrency transactions) and bank account records (for fiat transactions) in all transactions observed,” the report said.
The particular facts surrounding any such acquisition could have meaningful distinctions regarding the determination of the holder's tax cost upon the acquisition of the cryptocurrency (see below, under the heading Using cryptocurrencies in business transactions - Barter transaction”).
If a person acquires cryptocurrency as payment for goods or services in the normal course of the person's business (even if the person is not, per se, in the business of buying and selling cryptocurrencies as part of a speculative investment business), there is a risk that any appreciation realised when the person disposes of the cryptocurrency will be fully taxable as business income.