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As of 2025, the regulatory landscape continues to evolve, with significant developments that impact crypto trading in Canada.
Strengthened Oversight for Crypto Trading Platforms
The Canadian Securities Administrators (CSA) have implemented stringent requirements for crypto-asset trading platforms. These platforms must now register with their principal regulator and adhere to enhanced custody and segregation standards for client assets. Notably, platforms are prohibited from offering margin trading or allowing the purchase of stablecoins without prior CSA approval. Failure to comply may result in the platform being restricted from serving Canadian users.
Investment Funds and Crypto Assets
In April 2025, the CSA introduced amendments to National Instrument 81-102, focusing on investment funds that directly or indirectly invest in crypto assets. These amendments provide clarity on permissible crypto assets, impose restrictions on such investments, and establish custody requirements, aiming to enhance investor protection and market stability.
Taxation of Crypto Assets
The Canada Revenue Agency (CRA) treats cryptocurrency as a commodity, subjecting it to capital gains or income tax depending on the nature of the transaction. Fifty percent of capital gains and 100% of income from cryptocurrency are taxable. Exchanges are required to report transactions exceeding CAD 10,000, and starting in 2026, stricter reporting requirements will be enforced, including the disclosure of customer information.
Anti-Money Laundering and Travel Rule Compliance
Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, entities dealing in virtual currencies must register as money services businesses with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). These entities are obligated to report large virtual currency transactions and suspicious activities, ensuring compliance with Canada’s anti-money laundering regulations.
Institutional Engagement and Market Dynamics
The evolving regulatory environment has influenced the strategies of major crypto exchanges. Coinbase, for instance, became the first international crypto exchange to secure a restricted dealer registration in Canada, demonstrating a commitment to regulatory compliance. In contrast, Binance exited the Canadian market in 2024 due to the stringent regulatory requirements.
The post Crypto Regulations in Canada: A 2025 Overview appeared first on Coindoo.
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