Purchasing cryptocurrencies like Bitcoin (BTC), Dogecoin (DOGE) or Ether (ETH) in Canada is on an upsurge as crypto ownership rises. Moreover, the Ontario Securities Commission, in their report, stated that more than 30% of Canadians plan to buy crypto assets in 2023.
So, if you are wondering how to buy Bitcoin or crypto in Canada, then read on and familiarize yourself with the details.
Is it legal to buy cryptocurrency in Canada?
Cryptocurrency trading is legal in Canada even though it is not yet considered a legal tender. Canada Revenue Agency (CRA) specifies what virtual currencies are and provides information on all applicable taxes. One can choose to shop in cryptocurrency in Canada if retailers, coffee shops or e-commerce websites accept it.
The CRA treats cryptocurrency like a commodity that can result in capital gains or losses. Taxable transactions include sending, receiving and trading cryptocurrencies. Canada Securities Administrators’ website details how your crypto assets are regulated in Canada.
Do Canadian banks allow cryptocurrency?
With the growing popularity of cryptocurrencies, Canadian banks do allow and recognize cryptocurrency trading subject to federal and state regulations. For instance, Canadian banks have installed 2600+ Bitcoin ATMs, with Toronto at the highest with 897 ATMs. These ATMs allow people to convert their physical money into digital currency and buy and sell cryptocurrency in exchange for cash. Canada ranks second worldwide in Bitcoin ATMs after the United States.
Some popular Canadian banks which support crypto trade in one way or the other include the National Bank of Canada, Canadian Imperial Bank Of Commerce, Royal Bank of Canada, Scotiabank, ATB and Coast Capital, among many others also joining in as the crypto popularity in Canada continues to rise.
Banks allow purchasing crypto using a debit card, Interac e-transfer or bank wire transfer. Customers are required to link their bank accounts with a cryptocurrency exchange for buying cryptocurrencies using the Canadian dollar or other popular fiat currencies.
Credit cards can also be used to purchase crypto. However, this option can be expensive since banks may charge higher interest rates and additional cash advance fees on crypto credit card purchases.
Ways to buy cryptocurrency in Canada
Two common ways to buy cryptocurrency in Canada include either through a broker or directly through an exchange. However, cryptocurrency exchanges give the account holder…