Cryptocurrency Changes: Tax and Investment Considerations

Blockchain technologies and tax rules related to cryptocurrency continue to evolve. What do tax and financial advisors need to know about how these changes impact assets and investments, today, tomorrow and in the years to come? The newest speaker added to the DAC 2019 lineup Hussein Hallak, CEO & Founder of Next Decentrum will provide a primer with his speech on Reshaping Your World: Blockchain, Cryptocurrency and Cybersecurity.

Blockchain technologies – the technology behind cryptocurrency are already reshaping the world and will have a significant impact on assets and investments in the years to come, and most probably, in a positive way. Who will be affected the most? It’s financial intermediaries, including financial institutions, advisors and their clients. Find out more about how blockchain is reshaping the financial services, the work you do, the investments you select and your relationship with your clients. Knowledge Bureau I still accepting DAC registrations until October 15.

In addition to the outstanding learning and business opportunities at the Distinguished Advisor Conference , you’ll have opportunity to get up to 15 IIROC credits for Cycle 7 or 8 (pending CECAP accreditation), insurance credits and of course, Knowledge Bureau CE Credits.

What you need to know about tax changes to cryptocurrency . As we reported in May, when the finance department amended the Excise Tax Act to treat cryptocurrency similarly to legal tender, the result under the new guidelines is that transactions involving cryptocurrencies will be treated more like transactions involving foreign currencies. Gains or losses will still be generated when the value of cryptocurrencies fluctuates, relative to the Canadian dollar from the time of acquisition to the time of disposition. These will be treated as capital gains or losses unless the trading of the currencies is a business.

However, regardless of whether the transaction is on capital or income account, no GST/HST will apply to the purchase or sale of cryptocurrencies. Of course, GST/HST will still apply to the sale of goods or services regardless of whether the payment is in cash or cryptocurrency.

Up until this change took place, CRA’s policy has been to treat cryptocurrency, such as Bitcoin, as a commodity for income tax purposes. This means that a purchase where the payment is in cryptocurrency was treated as a barter transaction.

Additional educational resources: want to take your leadership skills to the next level, focus on your own self-care, and learn to scale your business? If you’re registered for DAC you can attend the Business Builder Retreat , also taking place in Puerto Vallarta, Mexico on November 9-10.

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