Looking for a cryptocurrency lawyer in Toronto? These proposals came when issues at QuadrigaCX, formerly Canada’s largest cryptocurrency exchange, called for regulatory oversight of the notorious industry. Quadriga was granted creditor protection last month.

Recently, a Canadian cryptocurrency exchange, QuadrigaCX, claimed that about $250 million of customers’ holdings are stuck in an electronic vault because the company’s founder, Gerry Cotten, died without sharing the password with anyone.

Other suspicious facts surround the case, and the conspiracies range from Gerry faking his death in India to run off with the money amid financial trouble to QuadrigaCX operating a pyramid or Ponzi scheme from its inception.

Which Canadian banks are crypto-friendly?

The majority of Canadian banks have adopted a cautious approach toward cryptocurrency. Although some banks have demonstrated interest in the technology and its potential, they have generally not provided direct support for buying, selling, or holding cryptocurrency.

A few Canadian banks have begun offering limited support for cryptocurrency. For instance, TD Bank allows its customers to view their cryptocurrency holdings through the TD app, but it currently does not permit buying or selling cryptocurrency via the app.

CIBC has allowed its customers to view their Bitcoin balances on the Coinbase exchange platform within the CIBC mobile banking app. Desjardins has partnered with Bitbuy, a cryptocurrency exchange platform, to offer its customers access to cryptocurrency services.

It’s crucial to remember that the cryptocurrency industry is rapidly advancing, and Canadian banks’ attitudes toward cryptocurrency may change over time. Therefore, before utilizing any bank’s services for cryptocurrency-related activities, it’s advisable to confirm with the bank for the latest information.

Is cryptocurrency legal in Toronto?

Cryptocurrency, including popular options such as Bitcoin and Ethereum, is legally recognized in Toronto and Canada. The Canadian government has adopted a laissez-faire attitude towards cryptocurrency regulation, permitting individuals and businesses to use cryptocurrencies for buying and selling purposes.

However, certain restrictions and regulations apply to the use of cryptocurrency in Canada. For example, cryptocurrency exchanges in the country must register with FINTRAC and abide by anti-money laundering and know-your-customer rules.

The Canada Revenue Agency considers cryptocurrency transactions taxable, requiring individuals and businesses to report any cryptocurrency-related gains or losses on their tax returns.

It’s crucial to stay informed about the latest developments in cryptocurrency regulations in Canada, as these laws are constantly evolving.

How do I cash out crypto in Toronto?

Exchanges such as Bitbuy, Coinsquare, and Kraken are popular choices among cryptocurrency holders. They allow you to sell your crypto assets and receive the equivalent amount in Canadian dollars, which can then be deposited into your bank account.

Convenient and accessible crypto ATMs in Toronto enable you to convert your digital assets into Canadian dollars instantly. Deposit your crypto and receive cash in return.

Consider selling your cryptocurrency to other individuals through P2P platforms such as LocalBitcoins and Paxful. These platforms allow you to negotiate the price and terms of the transaction with the buyer directly.

Certain cryptocurrency exchanges, including Bitbuy and Coinsquare, offer debit cards linked to your exchange account. These cards can be used to withdraw Canadian dollars from ATMs or make purchases, converting your cryptocurrency into cash.

When choosing the best cashing-out option for you, it is critical to weigh the fees, security measures, and convenience of each option. Additionally, remember that cryptocurrency’s value can fluctuate rapidly, and you may receive less than the current market value when cashing out.

Cryptocurrency Lawyer Toronto

Canadian regulators are proposing new rules that would regulate cryptocurrency exchanges and prevent users of these types of trading platforms from losing access to their funds. This would create new business law.

Specifically, regulators are seeking advice on how to alter current platform and dealer rules to address the nuances of cryptocurrency trading. Comments are due by May 15, and it’s unclear when the regulations will be enacted.

There are no cryptocurrency trading platforms recognized as exchanges, marketplaces or dealers in Canada.

According to the consultation paper by the Investment Industry Regulatory Organization of Canada and the Canadian Securities Administrators, the CSA.

Canadian Securities Administrators

Regulators and critics have identified several key issues with cryptocurrency exchanges, including how those businesses protect and hold sacred the so-called private keys needed to unlock cryptocurrency wallets that hold consumer money.

What does this mean for everyone? It is excellent news that Canadian securities regulators’ Blockchain and Cryptocurrency regulations have been drafted. The plan appears to have an all-encompassing outlook concerning cybersecurity and business continuity.

The CSA and IIROC consultation paper, “Proposed Framework for Crypto-Asset Trading Platforms”, is useful to read.

Your cryptocurrency lawyer in Toronto will assess the probability of your business becoming a money services business because of “dealing in virtual currencies” and develop a customized set of compliance strategies and policies.

For example, a lawyer might regularly consider how your particular token-related activities invoke the laws of:

• securities (e.g. ICOs / ITOs, SAFT issues, OSC LaunchPad representation, “securities” trigger, dealer exemptions, prospectus exemptions/private placements, secondary market issues, etc.);
• mutual funds;
• cryptocurrency contracting (e.g. Currency Act, Statute of Frauds, Conveyancing and Law of Property Act, etc.);
• income tax;
• GST-HST;
• anti-money laundering (AML);
• know-your-customer (KYC);
• financial institution issues (e.g. Bank Act and Trust and Loan Companies Act);
• other fiduciary issues (e.g. trustee/bailee issues, sale of goods, consumer protection, payday loans, general negligence);
• payments-system issues;
• monetary/financial instruments;
• token terms of use

Cryptocurrency Lawyer Helping With Virtual Currencies

Blockchain lawyers will also determine whether your smart contracts will likely be considered a service rather than a security or commodity for tax and fiduciary purposes.

We provide compliance with regulatory requirements for money services businesses that deal in virtual currencies under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its Regulations.

We will work with you and develop a customized set of compliance strategies and policies that consider your AML position today and when the new regulations come into force.

Consider the laws of:

• IT contracts with third-party tech vendors;
• node agreements;
• mining coalition agreements;
• data privacy in Canada;
• AI & algorithmic governance in smart contracts;
• insurance;
• corporate veil issues (e.g. regarding operations of a foreign wholly owned subsidiary);
• public international law;
• private international law (i.e. conflicts of laws);
• division of legislative powers;
• Customs Act issues (for import/export of tokens as non-money goods); and
• export controls (i.e. “token coin” as controlled outside “Systems, Equipment and Components”, international trade models).

A lawyer can also assess your blockchain business model and operational practices to determine the extent to which your token-related activities invoke Canadian Federal and Ontario laws.

We hope you found this article on how to find a cryptocurrency lawyer in Toronto useful.