The stock market has traditionally proved to be a fantastic platform for investors to trade financial instruments, and similarly commodities are traded by way of an investment vehicle known as a "future". Issuers of a cryptocurrency that is found to be a security will also need to ensure that they comply with any applicable registration requirements, including dealer registration, or that the conditions for an exemption from registration are fully satisfied.
In general terms, where a taxpayer does not engage in the business of trading in cryptocurrency (i.e., the taxpayer acquires such property cryptocurrencies canada for a long-term growth), any gain or loss generated from the disposition of cryptocurrency should be treated as on account of capital.

As discussed in the Staff Notice, the Canadian prospectus regime would apply to an offering of shares or units of a cryptocurrency fund in Canada subject to the important additional restriction that the offering memorandum exemption is not available for distributions of investment funds in Ontario or Quebec and this exemption is subject to other restrictions in certain other provinces.
Toronto-based cryptocurrency exchange Bitbuy , which offers trading in Bitcoin and 6 altcoins, has just inked a deal with Montreal-based Bitcoin security firm Knox Through the partnership, Bitbuy will leverage Knox's custody and 1:1 deposit insurance, making Bitbuy the world's first platform to find a way to keep the full value of its bitcoin cold storage holdings insured,” according to a press release.

Similarly, where the cryptocurrency given by the purchaser in exchange for goods or services was held in a business activity, the taxpayer will also realize proceeds for such cryptocurrency equal to the value of the cryptocurrency disposed of, expressed in Canadian dollars, at the time of the transaction.
Whether a crypto asset has been immediately delivered to a Platform's user is an important component in evaluating whether, and the extent to which, the transaction and the Platform are subject to securities legislation,” according to the joint statement.

The regulatory backdrop for this landmark registration is provided by the Canadian Securities Administrators (CSA) in Staff Notice 46-307 - Cryptocurrency Offerings (Staff Notice), which was published in August (see our September 2017 Blakes Bulletin: Industry Responds to CSA Guidance on Cryptocurrency Offerings ). The Staff Notice also included a discussion of the issues raised by cryptocurrency investment funds, which fund sponsors and distributors must be prepared to address.