Open a Cryptocurrency Company in Canada

Updated on Friday 26th October 2018

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Foreign investors who want to explore the financial industry in Canada can open fintech companies. These are companies which operate in one of the new branches of the financial sector: cryptocurrency, blockchain technology or virtual currency mining.

Those who want to open cryptocurrency companies in Canada will be glad to find out that certain activities related to virtual money are regulated in this country. Below, our company formation agents in Canada explain the requirements related to starting a cryptocurrency business in this country.

How to register a cryptocurrency business in Canada

The registration of a company in the cryptocurrency sector in Canada is no different from other types of companies. The limited liability company remains the most common option for both local and foreign investors who can register their crypto businesses at federal or regional level.

Our Canadian company formation consultants can help with the registration of a business which activates in the cryptocurrency sector.

Cryptocurrency activities regulated in Canada

Those who want to open cryptocurrency companies in Canada can undertake one or more of the following activities:
  •           mining activities which enable investors to general virtual money which can later be traded;
  •           trading activities – cryptocurrencies can be traded as commodities under the Canadian laws;
  •           payment service activities – investors can open a business which offers payment services with digital money;
  •           cryptocurrency ATMs – the installation of ATMs which exchange money for cryptocurrencies are also allowed in Canada;
  •           cryptocurrency exchange platforms can also be established under the Canadian legislation.

The Canadian government also enabled various regulations relating to the taxation of companies in the cryptocurrency field.

Taxation of cryptocurrency companies in Canada

Under the Canadian Income Tax Law, cryptocurrency transactions will be taxed as commodity transactions. Those who sell cryptocurrencies will need to declare in their tax returns the incomes generated from these activities which will be then imposed with the income tax applicable at a federal or territorial level.

For assistance in opening a cryptocurrency company, please contact our company registration advisors in Canada.