Crypto Regulations in Canada 2025

Canada was one of the first countries to enact crypto regulations, starting with anti-money laundering (AML) compliance in 2014. Since then, it has continued to refine its crypto regulations, balancing innovation with security with its robust crypto regulations framework. As of 2025, Canada has not released any new crypto-related laws, it is rather focusing on tightening the existing rules for virtual asset services providers (VASPs). 

Timeline of crypto regulations in Canada

2025- 2026: Real Time Rail prepares for testing 

• Canada’s real-time rail (RTR) is planning to modernize its national payment infrastructure with real-time, always-on, and data-rich payment capabilities.

• The approach led by Payments Canada will focus on testing in 2025, while in 2026, it is set for industry testing.

Date	Laws/ Regulations	Details
June 10, 2024	The June 10 Proposals	Proposal to implement the increase in capital gains inclusion rate. Started on 25th June.
May 17, 2024	Crypto Mining	BC Utilities Commission- included prohibiting, restricting, or regulating services for cryptomining
April 16, 2024	Proposal of The Organisation for Economic Co-operation and Development (OECD)	It was proposed to implement automatic exchange of tax information in crypto.
18 January 2024	National Instrument 81-102 ‘investment funds’	Additional restrictions and conditions were imposed on crypto investments
February 22, 2023	Additional conditions for crypto investments	Enabled trading in value reference crypto assets (VRCAs)
October 5, 2023	Staff Notice 21-333	Crypto asset trading platforms: terms and conditions for trading value-referenced crypto assets with clients
July 6, 2023	Staff Notice 81-336	CSA published- Guidance on Crypto Asset Investment Funds that are Reporting Issuers
June 22, 2023	Budget Implementation Act	Commercial service in the ETA to include crypto mining
June 1, 2021	Crypto travel rule	FINTRAC guidance for electronic funds and virtual currency transfers.
2019	Consultation paper 21-402	Proposed framework for crypto asset trading platform
2014	Proceeds of Crime and Terrorist Financing Act (PCA)	First country to create a new law addressing cryptocurrency

What is the Canadian government saying about crypto?

• Consumer safety: The federal government of Canada has taken steps to regulate cryptocurrency in the country, strengthening consumer protection and mitigating risks related to crypto investments.

• AML/ CFT: The Financial Transaction and Report Analysis Centre of Canada (FINTRAC) is currently prioritizing stringent anti-money laundering compliance and combating terrorist financing.

• License and registration: Under the federal law, all virtual asset service providers (VASPs) in Canada are required to register with the Money Services Business (MSB) with FINTRAC to operate legally. If this rule is not complied with, the government imposes penalties on the entity.

Crypto tax in Canada

• Capital gains tax: Selling or using crypto for purchases or trading it for another crypto is subject to CGT. CGT rate is the same as the Federal income tax rate and the provincial income tax rate. Only 50% of the capital gains are required to be paid.

• Income tax: Earnings from staking and mining or receiving crypto as payment trigger income tax, and are taxed at 100% of your capital gains are taxable as income.

• Tax-free events: Buying crypto (including NFTs) with Canadian dollars, transferring crypto between your own wallets, holding crypto, or receiving crypto as a gift are considered tax-free events.

• Tax season: The crypto tax season opened on February 24, 2025, and the reports of the transactions are required by April 30. The usual financial year runs from January 1 to December 31.

Tax table for 2025

Tax rate	Income in 2025
15%	$57,375 or less
20.5%	$57,375.01-$114,750
26%	$114,751- $177,882
29%	$177,883- $253,414
33%	$253,415+

Crypto adoption rate in Canada

• Crypto Adoption in 2025: As of 2025, 30.4% of the Canadian population is using cryptocurrencies. The penetration rate is expected to increase to 31.38% by 2026, projecting 12.70 million users.

• Crypto Revenue: Currently, the crypto market revenue in Canada is US$1.3 billion, projecting the average revenue per user to be approximately US$104.1. It is expected to grow at a rate of 10.14% by 2026, and the estimated crypto revenue for 2026 is US$1.4 billion.

• Crypto holdings: The Canadian government does not hold crypto assets as its official reserves; it focuses on regulating and expanding the crypto market rather than investing.

Conclusion

Canada is a leader in the global crypto hub with its strategic regulations to stop criminal operations. It has provided all the necessary detailed guidelines to operate crypto and to mitigate risks. It has adopted supportive policies to regulate crypto, enhancing the technological landscape of the region. In 2025, the country continues to flourish in its crypto market with the right balance between innovation and legal, ethical compliance.

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