I use Shakepay app to buy BTC and ETH after the Province banned Binance to operate after December 2021. I have been using Shakepay to buy BTC and shake SATOSHIS everyday. Read my post here.
Today, I received a message from Shakepay account where they claimed 2% (800,000) of the Canadian population is now registered with Shakepay. That's huge news. If there are 800K individuals who KYC'd with the app and are actively buying crypto (BTC and ETH), Canada seems to have a significant percentage of total population that is investing in the crypto space. There are numerous other Canadian apps that serve the Canadian regions and we have not even included international centralized exchanges that are legal to operate in various provinces.
This is bullish news, at least for me. Adoption and awareness of crypto and blockchain is necessary. Canada does not recognize cryptocurrencies as legal tender. The federal government has a website that provides details on how they view cryptocurrency.
The Canada Revenue Agency considers cryptocurrency as a commodity and requires traders and investors to pay capital gain taxes. Relatively speaking, the Canadian government is open to blockchain technology and cryptocurrency in the context of providing blockchain startups the regulatory support they need.
In 2021, Canada allowed BTC and ETH ETFs demonstrating the leadership in integrating crypto into traditional financing. This allowed more traditional investors to venture into crypto and learn about it. The investment accounts Canadian hold, namely RRSP and TFSAs, could take advantage of crypto exposure through these ETFs.
As an investor, I need to follow the Canadian Income Tax regulation in my transactions.
Most of the energy that Canada consumes is green. Hydropower is the main source of electricity and is one of the cleanest forms of energy that is available. That is one of the reasons, alongside regulation, that we have many miners setting their plants here. I was also reading somewhere that Quebec is planning to attract investors to invest in mining BTC by allowing them to use their hydropower energy. That will be a bold but a very smart move to be honest. There are concerns over dirty BTC and the use of clean energy can help that tag removed. If there is a government that has pro crypto regulation and allows miners to use electricity at a subsidized rate, any investors would invest in that region. In addition to that, cold weather in Canada helps to offset the heat generated from mining operations.
If Shakepay is right and we have indeed more than 2% of population involved in crypto, we can definitely expect government regulations coming in. I don't think it will be limiting the market but they will look for extra revenue source in the form of crypto traders and investors.
Crypto market is here to say and expect more regulations coming your way.
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