Cryptocurrency, also referred to as crypto, is a form of digital currency. Bitcoin and Ethereum are some of the biggest names in the crypto market.
Most types of cryptocurrencies exist in a decentralized network supported by blockchain technology. Blockchain serves as a public ledger that maintains a tamper-resistant record of transactions. This makes it virtually impossible for crypto owners to counterfeit their holdings or spend them twice.
In Canada, cryptocurrencies can be used in various transactions. They can serve as an alternative mode of payment for goods and services. These digital assets can also be used to participate in certain platforms, such as online games and financial products. Others work as a good option for speculative investing.
Depending on how it is used, a unit of cryptocurrency can be called a coin or a token. Crypto coins are intended as currency and have their own independent blockchain. Crypto tokens, meanwhile, represent an interest in an asset and are designed to facilitate transactions on blockchain. Tokens are built on an existing blockchain.
How is cryptocurrency regulated in Canada?
Canada regulates cryptocurrencies the same way as securities. This means that laws and regulations on securities also apply to crypto. Regulatory requirements, however, vary depending on the province and territory.
