# Bitcoin regulation in Canada

**Published by:** [Volerto](https://paragraph.com/@volerto/)
**Published on:** 2023-04-10
**URL:** https://paragraph.com/@volerto/bitcoin-regulation-in-canada

## Content

In Canada, the status of cryptocurrencies is that of a commodity, which means they are governed by securities laws. According to the Canadian Securities Administrators (CSA), they have issued guidance outlining how these laws apply to cryptocurrencies. This guidance establishes when cryptocurrencies may be considered securities and subject to regulation. The Canadian government states that if cryptocurrencies are used for purchasing goods or services, they are not regarded as securities. Conversely, if cryptocurrencies are sold for capital-raising purposes, they may be deemed securities and, thus, subject to securities laws. In terms of compliance, Canadian crypto exchanges and payment processors must register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as money services businesses (MSBs). As MSBs, they must adhere to anti-money laundering (AML) and counter-terrorist financing (CTF) rules, including Know Your Customer (KYC) regulations. The Canadian government has taken measures to regulate initial coin offerings (ICOs) as well. The CSA considers most ICOs securities, and therefore subject to securities laws, including prospectus and registration requirements. Canada's regulatory environment for cryptocurrencies is relatively favorable. The country has taken a proactive approach to regulating the industry while also permitting innovation and growth in the sector

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