Canada Compliance Report

Regulatory Overview

Regulatory Status

Dedicated crypto/VA legislation, licensing regime, active enforcement

Key Regulator(s)

FINTRAC, CSA, Regulator, Regulators, **Provincial and Territorial Securities Regulators, **Canadian Investment Regulatory Organization (CIRO)

Risk Level

low

Primary Legislation

[object Object], [object Object], [object Object]

Travel Rule

Adopted — Threshold: $10,000

Tax Reporting

Capital gains tax on dispositions; CRA treats crypto as commodity; 5-year record retention. **Calculation**: Proceeds of disposition minus adjusted cost base (ACB, using average cost method for identical assets).[3][5] Example: Buy crypto for $3,500 CAD, sell for $4,000 CAD → $500 gain, $250 taxable.[5]. **2025+ Change**: For individuals, gains over $250,000 annually have a **two-thirds inclusion rate** (not 50%) on the excess.[4]. Losses: 50% allowable capital losses offset taxable capital gains (not other income); excess carried forward/back.[5]. Distinguish via CRA factors: intent, frequency, knowledge, financing, advertising.[3]

Key Facts

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