Crypto Regulations in Canada 2025

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Canada was one of the first countries to enact crypto regulations, starting with anti-money laundering (AML) compliance in 2014. Since then, it has continued to refine its crypto regulations, balancing innovation with security with its robust crypto regulations framework. As of 2025, Canada has not released any new crypto-related laws, it is rather focusing on tightening the existing rules for virtual asset services providers (VASPs). 

Timeline of crypto regulations in Canada

2025- 2026: Real Time Rail prepares for testing 

Canada’s real-time rail (RTR) is planning to modernize its national payment infrastructure with real-time, always-on, and data-rich payment capabilities. 

The approach led by Payments Canada will focus on testing in 2025, while in 2026, it is set for industry testing. 

Date Laws/ Regulations Details June 10, 2024The June 10 ProposalsProposal to implement the increase in capital gains inclusion rate. Started on 25th June.May 17, 2024Crypto Mining BC Utilities Commission- included prohibiting, restricting, or regulating services for cryptominingApril 16, 2024Proposal of The Organisation for Economic Co-operation and Development (OECD)It was proposed to implement automatic exchange of tax information in crypto. 18 January 2024National Instrument 81-102 ‘investment funds’Additional restrictions and conditions were imposed on crypto investmentsFebruary 22, 2023Additional conditions for crypto investmentsEnabled trading in value reference crypto assets (VRCAs)October 5, 2023Staff Notice 21-333Crypto asset trading platforms: terms and conditions for trading value-referenced crypto assets with clients July 6, 2023Staff Notice 81-336CSA published- Guidance on Crypto Asset Investment Funds that are Reporting IssuersJune 22, 2023Budget Implementation Act Commercial service in the ETA to include crypto mining June 1, 2021Crypto travel ruleFINTRAC guidance for electronic funds and virtual currency transfers.2019Consultation paper 21-402Proposed framework for crypto asset trading platform 2014Proceeds of Crime and Terrorist Financing Act (PCA)First country to create a new law addressing cryptocurrency 

What is the Canadian government saying about crypto?

Consumer safety: The federal government of Canada has taken steps to regulate cryptocurrency in the country, strengthening consumer protection and mitigating risks related to crypto investments. 

AML/ CFT: The Financial Transaction and Report Analysis Centre of Canada (FINTRAC) is currently prioritizing stringent anti-money laundering compliance and combating terrorist financing. 

License and registration: Under the federal law, all virtual asset service providers (VASPs) in Canada are required to register with the Money Services Business (MSB) with FINTRAC to operate legally. If this rule is not complied with, the government imposes penalties on the entity. 

Crypto tax in Canada

Capital gains tax: Selling or using crypto for purchases or trading it for another crypto is subject to CGT. CGT rate is the same as the Federal income tax rate and the provincial income tax rate. Only 50% of the capital gains are required to be paid. 

Income tax: Earnings from staking and mining or receiving crypto as payment trigger income tax, and are taxed at 100% of your capital gains are taxable as income. 

Tax-free events: Buying crypto (including NFTs) with Canadian dollars, transferring crypto between your own wallets, holding crypto, or receiving crypto as a gift are considered tax-free events. 

Tax season: The crypto tax season opened on February 24, 2025, and the reports of the transactions are required by April 30. The usual financial year runs from January 1 to December 31.

Tax table for 2025

Tax rateIncome in 202515%$57,375 or less20.5%$57,375.01-$114,75026%$114,751- $177,88229%$177,883- $253,41433%$253,415+ 

Crypto adoption rate in Canada

Crypto Adoption in 2025: As of 2025, 30.4% of the Canadian population is using cryptocurrencies. The penetration rate is expected to increase to 31.38% by 2026, projecting 12.70 million users. 

Crypto Revenue: Currently, the crypto market revenue in Canada is US$1.3 billion, projecting the average revenue per user to be approximately US$104.1. It is expected to grow at a rate of 10.14% by 2026, and the estimated crypto revenue for 2026 is US$1.4 billion. 

Crypto holdings: The Canadian government does not hold crypto assets as its official reserves; it focuses on regulating and expanding the crypto market rather than investing. 

Conclusion

Canada is a leader in the global crypto hub with its strategic regulations to stop criminal operations. It has provided all the necessary detailed guidelines to operate crypto and to mitigate risks. It has adopted supportive policies to regulate crypto, enhancing the technological landscape of the region. In 2025, the country continues to flourish in its crypto market with the right balance between innovation and legal, ethical compliance.