Cryptocurrency is gaining popularity almost everywhere in the world. In a nation like Canada, which is one of the largest economies in the world and is highly developed, the cryptocurrency market is growing to a great extent.
Approximately more than 4 million Canadians possess a cryptocurrency. For a country with a population of less than 5 million, this is a great figure. It means around 14% of adults in Canada. It led to Canada being 19th among all the countries in terms of cryptocurrency possession.
Although Italy, Hong Kong, and Vietnam are still ahead, Canada has left behind countries like the United Kingdom and the United States in this race.
While Canada still ranks below the international norm for cryptocurrency adoption, it is in a good state compared to its neighbors in the south. Moreover, 45% of Canadians possess cryptocurrency, unlike the UK and the US.
Young investors in Canada have been on various websites to get information about cryptocurrencies and how to own them. It is a positive approach of the youth towards cryptocurrency. It will also empower the growth of cryptocurrencies in Canada.
The largest share of people who own cryptocurrencies in Canada is of the age range 18-24. According to figures, Canadian men are more interested in owning a cryptocurrency than women.
Like everywhere, Bitcoin is the most popular cryptocurrency in Canada too. There has also been growth in owning Bitcoin among the age group of 35-54. A rise in the oldest age group in terms of Bitcoin ownership was discernible.
The other cryptocurrencies prevalent in Canada are Ethereum, Bitcoin Cash, and Ripple.
The choice of a cryptocurrency exchange is an important factor because it determines whether a cryptocurrency will do well or fall flat. There are also various scams running through cryptocurrency exchanges. Hence, the choice becomes even more important. The most popular cryptocurrency exchanges in Canada are CoinSmart, Crypto.com, and Bitbuy.
Despite the growth in Canada, cryptocurrencies are not a legitimate tender. Nevertheless, the Bank of Canada is trialing digital currencies. They may launch a digital currency of their central bank soon. Currently, cryptocurrencies are regulated in Canada under securities laws.
Securities laws are approved on a provincial and territorial essence instead of federal. The securities rules all over the provinces and territories are coordinated substantially.
The tax treatment of cryptocurrencies in Canada is still undetermined. There is little juridical control or management counsel on it. Though the federal tax authority of Canada had conveyed its views about sales tax inferences of crypto mining, these views were not enough.
Furthermore, the federal government of Canada is taking steps to throw light on various equivocations. But still, a lot of work has to be done to strengthen the basic tax arrangement.
Canada was the first nation to ratify cryptocurrency regulation about anti-money laundering.
The Proceeds of Crime (Money Laundering) and Terrorist Financing Act comprises cryptocurrencies through a substructure for regulating the institutions trading in cryptocurrencies, considering them as money services businesses (MSBs).
The MSBs who trade in cryptocurrencies are treated similarly to the ones dealing in fiat currencies when it comes to record-keeping, affirmation process, unsure transaction detailing, and registration requirements.
The Canadian Securities Administrative Regulatory Sandbox was started to fortify the growth of new and innovative services. It permits firms dealing in cryptocurrency to look for exemptions to examine their services in the market of Canada.
Since the mining of cryptocurrencies involves a lot of electricity consumption, many people believe that it is a lost cause to spend energy for the generation of cryptocurrencies.
Hence, various organizations are introducing rules and regulations concerning cryptocurrency mining. Regulators in the government of Canada are not intervening in this matter.
As of now, there are no border limitations or statement requirements regarding cryptocurrencies in Canada and what is halving in bitcoin.
Since the popularity of cryptocurrencies is increasing in Canada, the Bank of Canada should launch a central bank digital currency to smoothen the inception of a stabler and legitimate currency in Canada.
Hence, we can conclude that Canada is performing well in the race of cryptocurrency ownership.
We can expect a greater performance of Canada in the game of cryptocurrency in the years to come since a lot of young and enthusiastic investors are entering it.