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Oh, Canada! (Culture & Cryptos)

“I associate many things with Canada, including friendly people, nature, ice hockey, wildlife, road trips, beautiful landscapes, maple syrup, Northern lights, winter, and diversity of people.” — Canadian Matthew G. Baley Editor in Chief of Must Do Canada.

(Alberta, Canada Photo by Jonathan Percy on Unsplash)

Canada is the world´s second-largest country by total area covering 9.98 Million Square Kilometers, with 10 provinces and 3 territories that go from the Atlantic to the Pacific and northward into the Arctic Ocean. The country is a Commonwealth realm within the Commonwealth Nations. Toronto, Montreal, and Vancouver are the largest metropolitan areas in the nation.

It ranks amongst the highest in international measurements of government transparency. The official languages are English & French. It is remarkably diverse, and welcoming country.

This is one of the most respected nations in the world, one of the most peaceful countries in the world, and one of the very few not to own a mass destruction weapon. According to the usfund.com, it is the most well-educated country in the world, 56.7% of adults have earned some kind of higher education or college degrees, that is more than half its people, and behind them is Japan & Israel.

“We need education to enable people to learn, think and adapt,” says Canadian Prime Minister Justin Trudeau.

The country is notably advanced because it supports its people to aspire to learn and grow, and the country leads by the example of its leaders.

(Toronto, Canada  Photo by Matthew Henry on Unsplash)

I always find it interesting how well-put-together-countries like Canada, Switzerland, and Australia all seem to have adapted to cryptocurrency blockchain technology with grace. They all have embraced the technology with diligence yet without fear displayed by several countries and giant techs.

Why are they so open to the new technologies in comparison to the others who are not?

Well, early adoption for most of these countries has always kept them ahead of the game, which is one of the factors they have been qualified as well-developed countries in the first place. And also, Canada, Switzerland, and Australia amongst others have highly-ranked transparent governments, which means the new cryptocurrency blockchain technology is attractive to them because it has the potential to keep ranking them as even more transparent than previously.

The prime minister´s quote above displays a major aspect about Canada and similar countries. These are countries that are convinced about promoting education to enable its people to LEARN, THINK AND ADAPT, so they could better position themselves within their community and economy.

When you give the people an education you also give them a voice of knowledge, and this is powerful.

As opposed to manipulative and controlling countries who “supply” their citizens to keep them illiterate and even from desiring an education, to take away their voice and powerAnd they do not even know it. Ignorant citizens will always be controlled and manipulated by corrupt countries. And these are the same countries fighting hard to keep the cryptocurrency and blockchain technology on a leash. Freedom to the people would mean less control and corruptions exposed.

So Kudos for Canada! For investing in its people´s education, in new technologies , and for having the best maple syrup ever. We love you for all of it.

(Vancouver, Canada Photo by Aditya Chinchure on Unsplash)

Cryptos & Canada

In Canada, cryptocurrencies are treated as a commodity, not real tender. And cryptocurrencies are subjected to the Income Tax Act, as described on the government´s website.

The country has major involvement with cryptos:

• It has not one but TWO cryptocurrency hub cities: Toronto & Vancouver;

• The concept of ICO was born in Toronto;

• Crypto Kitties the most popular dAPP on the Ethereum platform was created in Vancouver;

• Some of the first crypto ATM networks were created in Canada;

• Ethereum is “MADE-IN-CANADA”;

Back in June 2018, FINTRAC presented a set of strict regulation proposalsthat would affect cryptocurrency. Soon enough the cryptocurrency community demonstrated some concern. The country then decided to suspend the proposals until after the elections of 2019, holding it until 2020. They did not mention if it was because of the concerns, instead, they mentioned the upcoming election, and I am assuming that using the elections could have been an excuse to put it on hold.

“The decision to delay the proposed regulations bodes well for the Canadian blockchain and cryptocurrency space. The government is committed to an innovation agenda and sometimes … it may be best to observe and intervene as little as possible” — said Blockchain Association of Canada (BAC) Executive Director Kyle J. J. Kemper

Exactly!

I believe this gap until 2020 will give the government breathing room to decide if they would like to continue with the same proposals, while they watch the rest of the industry regulate, and based on well-thought decisions they will establish the regulations.

Sounds reasonable, doesn’t it? They are so far ahead they probably felt entitled to some time to breathe.

The cryptocurrency blockchain companies and community operating in the country do not seem pleased with the decision to delay the regulations because they fear the delay could set them up for disadvantage in the future. They desire to keep their position as the leading crypto country, and delaying it may give away their title to Switzerland or Malta who are not too far behind.

“Delay can put Canadian businesses at a competitive disadvantage. Other jurisdictions are moving more quickly to establish regulatory frameworks around crypto, to the extent those frameworks don’t already exist. Until the regulations are final, it will be challenging for Canadian crypto businesses to establish critical banking and other relationships because many financial sector players are waiting for a regulatory framework to be in place. The longer the delay, the harder it may be for the industry to grow in the meantime.”- said Evan Thomas a Toronto Based Lawyer

Thomas has a point, but would they be happy with the existing proposals if they were in full effect now? My guess from all the complains and concerns is No they wouldn´t.

Also, we must remember, Canada didn’t emerge as the leading crypto hub nation for no reason, it is focused in innovating, providing high internet speed, economical energy costs, and favorable regulatory regime and I doubt they want to lose that status. The country´s credibility and authority in the industry prove it has no intention to harm or to make things difficult. They are prudent and judicious.

Though according to Bitcoin Magazine, it has been advised by the Blockchain Research Institute (BRI) that is it indispensable that Canada should acquire a central regulatory organization at the federal level as SEC in the U.S. Canada is the only democracy well-developed country that doesn’t have a securities regulative authority.

Taxation

In Canada cryptos are taxed just like any other asset or commodity, 50% of gains are taxable, so if you buy 100$ worth of cryptos and sell them later for 300$, you must report 100$ (50% of 200$). This is added to your income and taxed at your marginal tax rate, and it is mandatory you keep a record of all your trades, especially when buying goods and services using cryptos. It does not apply to businesses, please check with the CRA for the regulations that may apply.

“How is cryptocurrency taxed in Canada is not an easy question to answer. If you’re unsure about how to handle your taxes, speak to an accountant who has experience with cryptocurrencies who can guide you through the process or file your taxes on your behalf. Canada’s tax system is fair, don’t try to cheat it unless you enjoy committing fraud.”- MoneyWeHave.com

Final Thought

(Multicolored northern lights (Aurora borealis) on Canadian forest)

Oh, Canada! You are a legitimate example of True Leadership and your people, your culture, your government, your rankings are your trophies to prove that. The world needs you.

As for crypto companies and communities, trust your leaders, allow them to do what is best for your nation as they have done so far. Hang on! Or you can do what Mr. Kryski did.

Eric Kryski a Canadian who owns a blockchain-based company called Bidali, has taken matters into his own hands, and sent a letter to FINTRAC expressing the concerns he and the community have about the new regulations and surprisingly (or not) they gracefully replied. You can do the same! Contact FINTRAC yourself!

Hope you have enjoyed the enchanting Canada as much as I did.

Let us know your thoughts and if you have any news or replies from FINTRAC in reference to the regulations we would love to hear about it in the comments!

Until next time,

The Winco Team.

Disclaimer: Our team works hard to bring you the best content in the cryptocurrency market, but it is only our point of view and not legal advice, and may be divergent from other opinions, so please do not make any decisions without concluding studies of your own to understand the profit possibilities and uncertainties involved at your own risk.

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