2019 has been quite active for the Canadian crypto landscape as major regulatory and market changes have hit the country quite hard. Starting from the diversification of its vast Bitcoin ATM market and ending with new crypto tax and maintenance regulatory frameworks, the Canadian government is gearing up for a crypto dominated future with new legislation in mind.
Crypto mining updates
The new cryptocurrency mining update from Canada that was first reported in April 2019 is starting to take effect as the province of Quebec is preparing for a crypto future.
According to several sources, Régie de l’énergie the energy regulator of the local province will allocate 300 Megawatts of power to the blockchain industry in the hopes of supporting its growth for the coming years.
This was one of the first times a government organization took such a direct approach to the nurturing of the blockchain industry.
The mining and cloud mining companies located in Quebec would have to qualify for the benefit though. The regulator would request the average monthly output data, employee payrolls for the year as well as the number of funds invested in the business venture.
This will have a direct impact on the profitability of crypto mining in Canada and the allocation of the energy resources in the country. The main issue is whether or not the country will fall victim to shortages, which could cause it to reduce the number of Megawatts directed to other industries that so desperately need it.
Crypto tax updates
The CRA (Canadian Revenue Agency) has reported that numerous issues were spotted within Canada in terms of tax evasion over the last couple of years.
The agency has been fast at work to introduce audits on a yearly basis, conducting more than 60 in 2017 alone. This year, however, it’s going to be much different as the CRA will benefit directly from the J5 Task Force which has been formed in conjunction with Australia, the United States, the United Kingdom and the Netherlands.
Although this is definitely nothing too alarming for the crypto community, in fact, it’s something that needs to be embraced with open arms, many gaming enthusiasts in the country are starting to fear their non-taxation policies to be abolished.
The local gaming law allows participants (and winners) in activities such as sports betting, wagering and online real money blackjack in Canada, to “avoid” any taxation on their profits. For example, a crypto trader would be expected to report their profits to the CRA and pay the due tax, while a crypto gambler would simply cash out his or her profits without having to even interact with the CRA.
After J5 starts its operations in the region, it’s highly likely that many tax evasion cases will be traced to crypto wagering websites and investment firms primarily.
Suggested ban on Bitcoin ATMs in Vancouver
The mayor of Vancouver has suggested that the city ban Bitcoin ATMs due to an increase in money laundering cases within the province.
According to the reports, criminals are completely free to purchase their own Bitcoin ATMs and install them within the city, after which they can very easily cash out their defrauded or stolen funds and not have to justify them in any way shape or form.
Judging by how a Bitcoin ATM costs no more than a few thousand dollars, and money laundering cases sometimes deal with hundreds of thousands, it’s obvious to see how the criminals would exploit this “feature”.
The argument against ATMs is extremely strong and will most likely impact all of the companies that deal with manufacturing them, overall decreasing the demand and the price as well. Should the ban be introduced, it’s highly likely that the ATM industry will lose around 5% of its market due to how many of them are located in Canada (around 76 in Vancouver alone).
Giorgi is a news reporter and financial analyst at www.forexnewsnow.com He has 3 years of experience in analyzing the financial markets of Forex and cryptocurrencies. He also likes making hidden jokes in his articles.